SkyWest, Inc. (SKYW Quick QuoteSKYW – Free Report) shares gained 11.7% since its third-quarter 2023 earnings release on Oct 26. The uptick can be attributed to the better-than-expected earnings and revenue performance of SkyWest in its third-quarter 2023 results.
Quarterly earnings per share (EPS) of 55 cents outpaced the Zacks Consensus Estimate of 40 cents but declined 42.7% year over year. Revenues of $766.2 million beat the Zacks Consensus Estimate of $762.6 million but slipped 2.9% year over year.
SkyWest, Inc. Price, Consensus and EPS Surprise
Revenues from flying agreements (contributing 96.8% to the top line) declined 2.8% from the prior-year reported figure of $741.89 million.
The airline carried 4.7% fewer passengers in the reported quarter on a year-over-year basis. Departures were 7.5% less on a year-over-year basis. The passenger load factor (percentage of seats filled by passengers) increased 0.5 points to 85.1%.
SkyWest has inked a new deal with United Airlines to place 19 new E175 aircraft under contract,with deliveries scheduled from late 2024 through 2026. By 2026-end, SkyWest is scheduled to operate a total of 258 E175 aircraft.
As of Sep 30, 2023, SKYW’s fleet size decreased to 493 from 530 a year ago.
Operating expenses were $717 million, up 0.4% from the year-ago reported quarter. The uptick was due to a rise in employee compensation, including higher pilot pay scales.
At the third-quarter end, the company had cash and marketable securities of $819.5 million compared with $862.3 million reported at the prior-quarter end. Long-term debt (net of current maturities) was $2,633.70 million compared with $2,743.80 million reported at the end of the prior quarter.
Per its previously announced share repurchase program authorized by SKYW’s board of directors in May 2023, SKYW repurchased 1.2 million shares for $50 million during third-quarter 2023. As of Sep 30, 2023, SkyWest had $136 million available under its current share repurchase program.
In the reported quarter, capital expenditures were $32 million. Additionally, SkyWest paid $36 million in aircraft deposits related to its order for 19 new E175 aircraft during third-quarter 2023.