Sky Harbour Group (NYSE:SKYH) Announces Quarterly Earnings Results

Sky Harbour Group (NYSE:SKYH) issued its quarterly earnings results on Wednesday. The company reported ($0.15) EPS for the quarter, missing analysts’ consensus estimates of ($0.14) by ($0.01), Zacks reports. Sky Harbour Group had a net margin of 63.95% and a return on equity of 6.83%. The firm had revenue of $0.01 million for the quarter, compared to analysts’ expectations of $9.44 million.

Here are the key takeaways from Sky Harbour Group’s conference call:

• Q2 revenue rose 50% year over year and 13% sequentially, driven by new campus openings, higher occupancy, and rent increases. Operating cash flow turned positive at approximately $0.5 million, which management described as a company milestone.
• Sky Harbour Capital revenue increased 79% year over year, while operating cash flow reached nearly $3 million for the quarter and marked the subsidiary’s 10th consecutive quarter of positive cash flow. Management expects operating leverage from Opa-locka Phase II and Addison Phase II to expand gross profit and EBITDA margins.
• Management reaffirmed year-end guidance for an annualized revenue run rate of $42 million to $46 million and adjusted EBITDA of $4 million to $6 million. It expects further gains from Opa-locka leasing, higher occupancy at Denver and Phoenix, and upcoming Bradley and Addison Phase II openings.
• Liquidity totaled more than $207 million in cash and U.S. Treasuries, plus approximately $130 million of available construction financing; the company also completed a $40 million common-stock placement. Management said potential public-warrant exercises could provide another roughly $94 million, but the equity issuance diluted existing shareholders.
• Adjusted EBITDA remained negative at approximately $0.9 million in Q2, while operating expenses continued to rise due partly to campus headcount and non-cash ground-lease accruals. Leasing has been slower than expected at Denver Centennial, and management acknowledged potential construction-inflation headwinds despite current costs of about $242 per square foot.

Sky Harbour Group Price Performance

SKYH traded down $0.45 on Thursday, hitting $11.04. The company had a trading volume of 349,169 shares, compared to its average volume of 149,449. The stock has a fifty day simple moving average of $10.05 and a 200-day simple moving average of $9.70. The firm has a market capitalization of $844.74 million, a P/E ratio of 269.50 and a beta of 1.31. Sky Harbour Group has a 52-week low of $8.22 and a 52-week high of $11.70.

Insider Buying and Selling at Sky Harbour Group

In other news, Director Andrew J. Gessow bought 5,000 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was purchased at an average price of $8.95 per share, with a total value of $44,750.00. Following the transaction, the director owned 17,910 shares of the company’s stock, valued at approximately $160,294.50. The trade was a 38.73% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 40.70% of the company’s stock.

Hedge Funds Weigh In On Sky Harbour Group

A number of institutional investors have recently added to or reduced their stakes in SKYH. Barclays PLC boosted its stake in Sky Harbour Group by 9.1% during the 4th quarter. Barclays PLC now owns 33,262 shares of the company’s stock valued at $298,000 after purchasing an additional 2,785 shares during the last quarter. Metis Global Partners LLC raised its stake in shares of Sky Harbour Group by 28.8% in the fourth quarter. Metis Global Partners LLC now owns 24,958 shares of the company’s stock worth $224,000 after purchasing an additional 5,576 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Sky Harbour Group by 126.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 29,309 shares of the company’s stock worth $263,000 after purchasing an additional 16,387 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Sky Harbour Group by 2.8% during the fourth quarter. Geode Capital Management LLC now owns 512,506 shares of the company’s stock valued at $4,598,000 after purchasing an additional 14,194 shares in the last quarter. Finally, American Century Companies Inc. lifted its holdings in shares of Sky Harbour Group by 64.9% during the second quarter. American Century Companies Inc. now owns 34,123 shares of the company’s stock valued at $333,000 after purchasing an additional 13,434 shares in the last quarter. Institutional investors own 14.75% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have issued reports on SKYH shares. Noble Financial raised Sky Harbour Group to a “strong-buy” rating in a research note on Monday, May 18th. Weiss Ratings raised shares of Sky Harbour Group from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 6th. Finally, Roth Capital started coverage on shares of Sky Harbour Group in a report on Friday, July 31st. They issued a “buy” rating and a $14.00 price objective for the company. Two investment analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $13.50.

About Sky Harbour Group

Sky Harbour Group Inc is a U.S.-based real estate development and operating company focused on private aviation infrastructure. The company specializes in the acquisition, design and management of fixed-base operations (FBOs), aircraft hangarage and private terminals that serve business and general aviation operators. By providing expedited ground handling, concierge services and state-of-the-art facilities, Sky Harbour seeks to streamline the operations of private jet owners, fractional-ownership programs and charter operators while reducing congestion at major airports.

Through strategic leases and joint-venture partnerships, Sky Harbour has established a growing presence at key regional and metropolitan airports across the United States.