We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SkyWest (SKYW) Stock Increases 8.2% Since Q4 Earnings Beat
Read MoreHide Full Article
SkyWest, Inc. (SKYW - Free Report) stock gained 8.2% since its fourth-quarter 2023 earnings release on Feb 1.The uptick can be attributed to better-than-expected earnings performance. Notably, quarterly earnings per share (EPS) of 42 cents outpaced the Zacks Consensus Estimate of 11 cents.
Revenues of $751.8 million lagged the Zacks Consensus Estimate of $790.1 million but improved 10% year over year owing to flying contract rate increases and 2% higher production in fourth-quarter 2023. Additionally, SKYW had $63 million of deferred revenues during the reported quarter under its flying contracts.
Revenues from flying agreements (which contributed 96.8% to the top line) grew 11.2% from the year-ago reported figure of $728.26 million. The airline carried 5.2% more passengers in the reported quarter on a year-over-year basis. Departures were 5.1% more on a year-over-year basis. The passenger load factor (percentage of seats filled by passengers) decreased 1.2 points to 83.4%.
Concurrent with its fourth-quarter 2023 results, SkyWest also announced that it has acquired a 25% ownership stake in Contour Airlines, a Part 135 carrier. The Contour deal includes an asset provisioning agreement, per which SKYW will offer CRJ airframes, engines, and rotatable parts to Contour.
By 2026-end, SkyWest is scheduled to operate 258 E175 aircraft.
Operating expenses were $724 million, up 1% from the year-ago reported quarter. The upside was due to an increase in employee compensation, which includes higher labor pay scales and increased maintenance costs, partially offset by lower aircraft rent expenses from the early lease buyouts on aircraft in the first quarter of 2023.
At the fourth-quarter end, the company had cash and marketable securities of $835.22 million compared with $819.5 million reported at the prior-quarter end. Long-term debt (net of current maturities) was $2,562.18 million compared with $2,633.70 million reported at the end of the prior quarter.
Per its previously announced share repurchase program authorized by SKYW’s board of directors in May 2023, SKYW repurchased 1.0 million shares for $45 million during fourth-quarter 2023. For 2023, SkyWest repurchased 10.6 million shares for $289 million. As of Dec 31, 2023, SkyWest had $91 million available under its current share repurchase program.
Capital expenditures during the reported quarter were $86 million.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
SkyWest (SKYW) Stock Increases 8.2% Since Q4 Earnings Beat
SkyWest, Inc. (SKYW - Free Report) stock gained 8.2% since its fourth-quarter 2023 earnings release on Feb 1.The uptick can be attributed to better-than-expected earnings performance. Notably, quarterly earnings per share (EPS) of 42 cents outpaced the Zacks Consensus Estimate of 11 cents.
Revenues of $751.8 million lagged the Zacks Consensus Estimate of $790.1 million but improved 10% year over year owing to flying contract rate increases and 2% higher production in fourth-quarter 2023. Additionally, SKYW had $63 million of deferred revenues during the reported quarter under its flying contracts.
Revenues from flying agreements (which contributed 96.8% to the top line) grew 11.2% from the year-ago reported figure of $728.26 million. The airline carried 5.2% more passengers in the reported quarter on a year-over-year basis. Departures were 5.1% more on a year-over-year basis. The passenger load factor (percentage of seats filled by passengers) decreased 1.2 points to 83.4%.
SkyWest, Inc. Price, Consensus and EPS Surprise
SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote
Concurrent with its fourth-quarter 2023 results, SkyWest also announced that it has acquired a 25% ownership stake in Contour Airlines, a Part 135 carrier. The Contour deal includes an asset provisioning agreement, per which SKYW will offer CRJ airframes, engines, and rotatable parts to Contour.
By 2026-end, SkyWest is scheduled to operate 258 E175 aircraft.
Operating expenses were $724 million, up 1% from the year-ago reported quarter. The upside was due to an increase in employee compensation, which includes higher labor pay scales and increased maintenance costs, partially offset by lower aircraft rent expenses from the early lease buyouts on aircraft in the first quarter of 2023.
At the fourth-quarter end, the company had cash and marketable securities of $835.22 million compared with $819.5 million reported at the prior-quarter end. Long-term debt (net of current maturities) was $2,562.18 million compared with $2,633.70 million reported at the end of the prior quarter.
Per its previously announced share repurchase program authorized by SKYW’s board of directors in May 2023, SKYW repurchased 1.0 million shares for $45 million during fourth-quarter 2023. For 2023, SkyWest repurchased 10.6 million shares for $289 million. As of Dec 31, 2023, SkyWest had $91 million available under its current share repurchase program.
Capital expenditures during the reported quarter were $86 million.
Currently, SkyWest sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.