SkyWest (NASDAQ:SKYW) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

SkyWest (NASDAQ:SKYW) posted its earnings results on Thursday. The transportation company reported $3.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.07 by $0.01, FiscalAI reports. SkyWest had a net margin of 9.78% and a return on equity of 14.58%. The business had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same period in the prior year, the company posted $2.81 EPS. The company’s revenue for the quarter was up 6.4% on a year-over-year basis.

Here are the key takeaways from SkyWest’s conference call:

• Third-quarter results were strong: SkyWest reported $120 million in net income, or $3.08 per diluted share, on $1.1 billion of revenue, while completing 99.9% of more than 230,000 flights.
• Fuel costs pressured the prorate business. Prorate fuel expense rose to $66 million from $34 million a year earlier as the average fuel price increased to $4.56 per gallon; management said higher yields are offsetting only part of the increase.
• SkyWest expects 2026 block hours to increase approximately 5%, with full-year EPS around $10.60, but is assuming fourth-quarter fuel costs of $4.90 per gallon. For 2027, block hours are expected to rise 1%–2% and EPS to be similar to 2026.
• The company is continuing its fleet renewal and expansion. SkyWest expects to receive 18 new E175s in 2027, reach roughly 300 E175s by year-end 2027, and deploy CRJ450 aircraft later this year, supporting longer-term cash earnings and an all-dual-class fleet.
• Management emphasized balance-sheet strength and capital flexibility, citing $1 billion of debt reduction since the end of 2022, more than $1.5 billion of unpledged assets, $238 million remaining under its buyback authorization, and planned 2027 capital expenditures of approximately $825 million.

SkyWest Trading Down 12.4%

Shares of NASDAQ:SKYW traded down $11.99 during midday trading on Friday, reaching $84.55. The company had a trading volume of 156,290 shares, compared to its average volume of 357,046. The company has a fifty day simple moving average of $96.83 and a two-hundred day simple moving average of $96.21. The firm has a market cap of $3.28 billion, a price-to-earnings ratio of 8.42, a price-to-earnings-growth ratio of 1.38 and a beta of 1.47. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.46 and a current ratio of 0.57. SkyWest has a 1-year low of $77.89 and a 1-year high of $117.72.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Cantor Fitzgerald set a $116.00 price objective on SkyWest in a research note on Friday, October 2nd. Deutsche Bank Aktiengesellschaft cut SkyWest from a “buy” rating to a “hold” rating and set a $105.00 target price for the company. in a research report on Friday. The Goldman Sachs Group cut SkyWest from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $126.00 to $115.00 in a research report on Thursday, July 2nd. TD Cowen lowered their price target on shares of SkyWest from $123.00 to $116.00 and set a “buy” rating for the company in a report on Friday, October 2nd. Finally, Weiss Ratings upgraded SkyWest from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $111.40.

Insider Activity at SkyWest

In related news, insider Wade Steel sold 22,000 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $111.44, for a total transaction of $2,451,680.00. Following the transaction, the insider directly owned 55,438 shares of the company’s stock, valued at approximately $6,178,010.72. The trade was a 28.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 1.50% of the company’s stock.

Key Headlines Impacting SkyWest

Here are the key news stories impacting SkyWest this week:

• Positive Sentiment: SkyWest reported third-quarter EPS of $3.08, slightly ahead of the $3.07 FactSet consensus and up from $2.81 a year earlier. Revenue increased 6.4% year over year to approximately $1.12 billion, while net income reached $120 million. SkyWest Reports Third-Quarter Earnings Results
• Positive Sentiment: Management expects 2026 EPS of approximately $10.60 and is targeting 1%–2% block-hour growth in 2027, suggesting continued earnings strength and modest capacity expansion. SkyWest 2026 EPS and 2027 Block-Hour Outlook
• Neutral Sentiment: SkyWest’s valuation remains comparatively low at roughly 8.4 times earnings, and some coverage continues to describe the stock as undervalued following its large advance. However, the lower analyst target indicates that investors may already be pricing in much of the company’s operational improvement. SkyWest Revenue and Profit Analysis
• Negative Sentiment: Results were mixed against estimates: EPS missed the more conservative Zacks consensus of $3.13, while revenue fell short of the $1.14 billion analyst estimate. The revenue shortfall and Deutsche Bank’s downgrade are likely weighing on investor sentiment despite the earnings beat against the FactSet estimate. SkyWest Third-Quarter Earnings and Revenue Miss

SkyWest announced that its Board of Directors has initiated a share repurchase program on Thursday, July 23rd that authorizes the company to buy back $250 million in shares. This buyback authorization authorizes the transportation company to purchase up to 6.6% of its shares through open market purchases. Share buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

About SkyWest

SkyWest, Inc (NASDAQ: SKYW) is an airline holding company that operates regional passenger air service in the United States. Its primary subsidiary, SkyWest Airlines, connects smaller and midsized communities with larger airline hubs and provides scheduled flights under capacity-purchase agreements with major airline partners.

SkyWest Airlines operates flights under the United Express, Delta Connection and Alaska Airlines brands, serving destinations throughout the United States and select locations in Canada, Mexico and the Bahamas.