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The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 128.02%. The Zacks Consensus Estimate for first-quarter 2024 earnings has been revised 23.36% upward over the past 60 days.
Given this backdrop, let’s delve deeper to unearth the factors likely to have influenced SKYW’s performance in the to-be-reported quarter.
We expect revenues from flying agreements (which account for bulk of the top line) to have been impressive in the to-be-reported quarter. Owing to an uptick in air-travel demand, passenger volumes are likely to have been upbeat, in turn boosting the top line in the quarter under review.
However, operating costs are likely to have increased from the year-ago levels at SKYW, in turn hurting the bottom line in the to-be-reported quarter. Costs are likely to have been high due to an increase in employee compensation. Higher labor pay and increased maintenance costs are likely to have pushed up employee compensation in the March quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for SKYW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
SkyWest has an Earnings ESP of -9.85% (the Most Accurate Estimate is currently pegged at $1.19 per share, whereas the Zacks Consensus Estimate is currently pegged at $1.32 per share) and a Zacks Rank #3.
Highlights of Q4
SkyWest’s fourth-quarter 2023 earnings per share 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. Additionally, SKYW had $63 million of deferred revenues during the reported quarter, under its flying contracts.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their first-quarter 2024 earnings.
AAL is scheduled to report first-quarter 2024 earnings on Apr 25. The Zacks Consensus Estimate for first-quarter earnings has declined 21.74% over the past 60 days. AAL has surpassed the Zacks Consensus Estimate in each of the preceding four quarters. The average beat is 119%.
Westinghouse Air Brake Technologies (WAB - Free Report) has an Earnings ESP of +4.98% and a Zacks Rank #3. WAB is scheduled to report first-quarter 2024 earnings on April 24.
WAB has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.63%.
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SkyWest (SKYW) to Release Q1 Earnings: What's in the Offing?
SkyWest (SKYW - Free Report) is scheduled to report first-quarter 2024 results on Apr 25, after market close.
The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 128.02%. The Zacks Consensus Estimate for first-quarter 2024 earnings has been revised 23.36% upward over the past 60 days.
SkyWest, Inc. Price and EPS Surprise
SkyWest, Inc. price-eps-surprise | SkyWest, Inc. Quote
Given this backdrop, let’s delve deeper to unearth the factors likely to have influenced SKYW’s performance in the to-be-reported quarter.
We expect revenues from flying agreements (which account for bulk of the top line) to have been impressive in the to-be-reported quarter. Owing to an uptick in air-travel demand, passenger volumes are likely to have been upbeat, in turn boosting the top line in the quarter under review.
However, operating costs are likely to have increased from the year-ago levels at SKYW, in turn hurting the bottom line in the to-be-reported quarter. Costs are likely to have been high due to an increase in employee compensation. Higher labor pay and increased maintenance costs are likely to have pushed up employee compensation in the March quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for SKYW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
SkyWest has an Earnings ESP of -9.85% (the Most Accurate Estimate is currently pegged at $1.19 per share, whereas the Zacks Consensus Estimate is currently pegged at $1.32 per share) and a Zacks Rank #3.
Highlights of Q4
SkyWest’s fourth-quarter 2023 earnings per share 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. Additionally, SKYW had $63 million of deferred revenues during the reported quarter, under its flying contracts.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their first-quarter 2024 earnings.
American Airlines (AAL - Free Report) has an Earnings ESP of +6.51% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AAL is scheduled to report first-quarter 2024 earnings on Apr 25. The Zacks Consensus Estimate for first-quarter earnings has declined 21.74% over the past 60 days. AAL has surpassed the Zacks Consensus Estimate in each of the preceding four quarters. The average beat is 119%.
Westinghouse Air Brake Technologies (WAB - Free Report) has an Earnings ESP of +4.98% and a Zacks Rank #3. WAB is scheduled to report first-quarter 2024 earnings on April 24.
WAB has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.63%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.