SkyWest (NASDAQ:SKYW) Issues Earnings Results, Beats Estimates By $0.35 EPS

SkyWest (NASDAQ:SKYW) announced its earnings results on Thursday. The transportation company reported $2.50 earnings per share for the quarter, topping analysts’ consensus estimates of $2.15 by $0.35, FiscalAI reports. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $993.06 million. SkyWest had a net margin of 10.56% and a return on equity of 16.35%. The company’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business earned $2.42 EPS.

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

• SkyWest reported first-quarter GAAP net income of $102 million (or $2.50 per share), modestly ahead of year-ago results on higher production and fleet utilization despite winter storms.
• The company is accelerating fleet growth and product innovation — including unveiling the CRJ‑450 for United this fall and continuing E175 deliveries (one received in Q1, eight expected in 2026 and ~300 E175s fleet target by end of 2028) to preserve long-term flexibility.
• SkyWest trimmed its 2026 GAAP EPS color to roughly $11 (down from mid‑$11 previously) and said block‑hour production will be slightly lower this summer, with ongoing exposure to elevated fuel costs on ~10% of its flying.
• Management continues to deploy free cash flow toward deleveraging and shareholder returns — total debt is about $1 billion lower than end‑2022, Q1 included a $75 million share repurchase and disciplined CapEx to support growth.
• Operational headwinds persist in the third‑party MRO network (labor and parts shortages), keeping 2026 maintenance expense roughly in line with 2025 as aircraft are returned from storage and some CRJ‑200s require conversions or heavy maintenance.

SkyWest Stock Down 6.8%

Shares of SkyWest stock traded down $6.28 during trading hours on Friday, reaching $86.47. 221,204 shares of the company’s stock were exchanged, compared to its average volume of 326,587. The company has a 50 day moving average of $95.92 and a two-hundred day moving average of $98.85. SkyWest has a fifty-two week low of $85.24 and a fifty-two week high of $123.94. The company has a current ratio of 0.65, a quick ratio of 0.55 and a debt-to-equity ratio of 0.67. The stock has a market cap of $3.47 billion, a P/E ratio of 8.37, a P/E/G ratio of 1.27 and a beta of 1.63.

Insider Activity

In other news, insider Wade J. Steel sold 20,629 shares of the company’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $106.53, for a total value of $2,197,607.37. Following the sale, the insider directly owned 77,438 shares of the company’s stock, valued at approximately $8,249,470.14. This represents a 21.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.50% of the company’s stock.

Institutional Investors Weigh In On SkyWest

Institutional investors and hedge funds have recently modified their holdings of the company. Transamerica Financial Advisors LLC raised its holdings in shares of SkyWest by 273.6% in the 4th quarter. Transamerica Financial Advisors LLC now owns 269 shares of the transportation company’s stock valued at $27,000 after purchasing an additional 197 shares during the period. Johnson Financial Group Inc. bought a new stake in shares of SkyWest in the 3rd quarter valued at about $62,000. EverSource Wealth Advisors LLC raised its holdings in shares of SkyWest by 118.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 625 shares of the transportation company’s stock valued at $64,000 after purchasing an additional 339 shares during the period. Smartleaf Asset Management LLC raised its holdings in shares of SkyWest by 15.6% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,037 shares of the transportation company’s stock valued at $105,000 after purchasing an additional 140 shares during the period. Finally, Kestra Advisory Services LLC bought a new stake in shares of SkyWest in the 4th quarter valued at about $130,000. 81.30% of the stock is owned by institutional investors.

Key SkyWest News

Here are the key news stories impacting SkyWest this week:

• Positive Sentiment: Q1 beat — SkyWest reported EPS of $2.50 and roughly $1.01B revenue, topping consensus and showing year‑over‑year revenue growth. SkyWest Q1 results (Quiver)
• Positive Sentiment: Fleet/growth catalyst — SkyWest plans to launch the CRJ450 in partnership with United this fall, which could expand capacity and future revenue. CRJ450 launch (MSN)
• Neutral Sentiment: Capex vs. long‑term growth — Capital spending jumped (~$214M) to fund fleet and projects; this supports growth but creates near‑term cash pressure. Capex details (Quiver)
• Neutral Sentiment: Company/analyst 2026 view — Management and some coverage point to GAAP EPS in the low‑teens (around $11) for 2026, setting expectations for the year. 2026 EPS outlook (Seeking Alpha)
• Negative Sentiment: Trimmed 2026 EPS outlook — Management lowered its EPS outlook for 2026, a primary reason investors sold into the headline. Guidance trim (MSN)
• Negative Sentiment: Rising costs and margin pressure — Cost of sales rose materially (reported ~+11% YoY), gross and operating profit declined, and passenger metrics showed weakness that pressured margins. Costs and margin pressure (Zacks)
• Negative Sentiment: Liquidity and cash decline — Operating cash improved, but cash balances fell (~$122.7M) after heavy capex, and liquidity ratios remain tight — a short‑term risk for investors. Cash & capex (Quiver)
• Negative Sentiment: Insider selling & market reaction — Recent insider sales and headlines about higher costs/guidance led to shares edging lower on the print. Market reaction (Investing.com)

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Cantor Fitzgerald set a $122.00 price objective on shares of SkyWest in a research note on Monday, January 26th. Weiss Ratings restated a “buy (b-)” rating on shares of SkyWest in a research note on Thursday, January 22nd. Citigroup reduced their price objective on shares of SkyWest from $112.00 to $101.00 and set a “neutral” rating for the company in a research note on Friday, March 20th. Finally, TD Cowen reduced their price objective on shares of SkyWest from $122.00 to $106.00 and set a “buy” rating for the company in a research note on Friday, April 17th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $119.80.

SkyWest Company Profile

SkyWest, Inc (NASDAQ: SKYW) is a regional airline holding company that provides air transportation services through its primary subsidiary, SkyWest Airlines. The company operates flights under capacity purchase agreements with major carriers such as United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. By specializing in regional connectivity, SkyWest links smaller communities to larger hubs using a fleet of regional jets and turboprop aircraft.

Headquartered in St. George, Utah, SkyWest oversees all aspects of its airline operations, including flight scheduling, crew training and aircraft maintenance.