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SkyWest’s (SKYW - Free Report) delivered better-than-expected results in the first quarter of 2019. The company’s earnings (on an adjusted basis) of $1.33 per share surpassed the Zacks Consensus Estimate of $1.18. Also, the bottom line improved 29% on a year-over-year basis. Results benefited from the company’s fleet transition initiatives.
Quarterly revenues came in at $724 million, beating the Zacks Consensus Estimate of $707 million. However, the top line declined year over year owing to the sale of ExpressJet Airlines in January 2019.
In fact, SkyWest’s efforts to modernize its fleet and streamline operations are very impressive. The company aims to reduce the 50-seat jets from its fleet and add new E175 aircraft. In fact, this St. George, UT-based carrier reported a 6.2% increase in block hours (a measure of aircraft utilization) during the first quarter of 2019.
Operating expenses declined to 9.8% to $627 million owing to the sale of ExpressJet Airlines. Expenses on salaries, wages and benefits decreased 16% to $257.6 million.
The company, carrying a Zacks Rank #2 (Buy), exited the reported quarter with cash and marketable securities of $544.2 million, down 21% sequentially. Total debt decreased to $2.7 billion from $2.8 billion in at the end of 2018. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We are also pleased by the company’s efforts to reward shareholders. To this end, the company bought back shares worth $25 million. Out of the $25 million, $21 million was purchased under our new $250 million program approved by the board in February 2019.
Apart from announcing its quarterly results, the company agreed to a multi-year extension with American Airlines (AAL - Free Report) on 38 CRJ700 jets. SkyWest expects to add two used CRJ700 aircraft to the above-mentioned contract in the second quarter under a multi-year term.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting first-quarter earnings reports from key players, namely C.H. Robinson Worldwide (CHRW - Free Report) and Air Lease Corporation (AL - Free Report) . While C.H. Robinson will report first-quarter earnings on Apr 30, Air Lease will announce the same on May 9.
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SkyWest's (SKYW) Q1 Earnings & Revenues Surpass Estimates
SkyWest’s (SKYW - Free Report) delivered better-than-expected results in the first quarter of 2019. The company’s earnings (on an adjusted basis) of $1.33 per share surpassed the Zacks Consensus Estimate of $1.18. Also, the bottom line improved 29% on a year-over-year basis. Results benefited from the company’s fleet transition initiatives.
Quarterly revenues came in at $724 million, beating the Zacks Consensus Estimate of $707 million. However, the top line declined year over year owing to the sale of ExpressJet Airlines in January 2019.
In fact, SkyWest’s efforts to modernize its fleet and streamline operations are very impressive. The company aims to reduce the 50-seat jets from its fleet and add new E175 aircraft. In fact, this St. George, UT-based carrier reported a 6.2% increase in block hours (a measure of aircraft utilization) during the first quarter of 2019.
Operating expenses declined to 9.8% to $627 million owing to the sale of ExpressJet Airlines. Expenses on salaries, wages and benefits decreased 16% to $257.6 million.
SkyWest, Inc. Price, Consensus and EPS Surprise
SkyWest, Inc. Price, Consensus and EPS Surprise | SkyWest, Inc. Quote
The company, carrying a Zacks Rank #2 (Buy), exited the reported quarter with cash and marketable securities of $544.2 million, down 21% sequentially. Total debt decreased to $2.7 billion from $2.8 billion in at the end of 2018. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We are also pleased by the company’s efforts to reward shareholders. To this end, the company bought back shares worth $25 million. Out of the $25 million, $21 million was purchased under our new $250 million program approved by the board in February 2019.
Apart from announcing its quarterly results, the company agreed to a multi-year extension with American Airlines (AAL - Free Report) on 38 CRJ700 jets. SkyWest expects to add two used CRJ700 aircraft to the above-mentioned contract in the second quarter under a multi-year term.
Upcoming Releases
Investors interested in the broader Transportation sector are keenly awaiting first-quarter earnings reports from key players, namely C.H. Robinson Worldwide (CHRW - Free Report) and Air Lease Corporation (AL - Free Report) . While C.H. Robinson will report first-quarter earnings on Apr 30, Air Lease will announce the same on May 9.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>