SkyWest (NASDAQ:SKYW) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• SkyWest shares gapped up at the open after the company reported better-than-expected quarterly earnings, briefly trading above $102 after closing at $96.24 the prior day.
• The airline holding company posted EPS of $2.54, edging past Wall Street estimates by $0.01, while revenue came in at $1.10 billion versus expectations of $1.11 billion.
• Analysts remain mixed on the stock, with a consensus “Moderate Buy” rating and an average price target of $121.17, even as some firms recently cut ratings or adjusted targets.

Shares of SkyWest, Inc. (NASDAQ:SKYW - Get Free Report) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $96.24, but opened at $100.04. SkyWest shares last traded at $102.4180, with a volume of 51,110 shares changing hands.

The transportation company reported $2.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.53 by $0.01. SkyWest had a net margin of 10.42% and a return on equity of 15.55%. The company had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.11 billion. During the same quarter last year, the firm earned $2.91 EPS. The company's revenue for the quarter was up 6.5% on a year-over-year basis.

Analysts Set New Price Targets

SKYW has been the topic of several recent research reports. The Goldman Sachs Group lowered SkyWest from a "buy" rating to a "neutral" rating and reduced their price target for the stock from $126.00 to $115.00 in a research report on Thursday, July 2nd. Weiss Ratings upgraded SkyWest from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, July 16th. Citigroup upped their price target on SkyWest from $95.00 to $105.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. Finally, TD Cowen lifted their price objective on shares of SkyWest from $98.00 to $115.00 and gave the stock a "buy" rating in a research note on Thursday, July 2nd. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $121.17.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in SkyWest by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,590 shares of the transportation company's stock worth $2,061,000 after purchasing an additional 1,034 shares during the period. United Services Automobile Association acquired a new position in shares of SkyWest during the first quarter worth about $227,000. M&T Bank Corp grew its holdings in shares of SkyWest by 7.6% during the second quarter. M&T Bank Corp now owns 2,825 shares of the transportation company's stock worth $290,000 after buying an additional 199 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of SkyWest by 118.5% during the second quarter. EverSource Wealth Advisors LLC now owns 625 shares of the transportation company's stock worth $64,000 after buying an additional 339 shares in the last quarter. Finally, First Trust Advisors LP raised its position in SkyWest by 8.8% in the 2nd quarter. First Trust Advisors LP now owns 85,577 shares of the transportation company's stock valued at $8,812,000 after buying an additional 6,938 shares during the last quarter. Institutional investors and hedge funds own 81.30% of the company's stock.

SkyWest Stock Performance

The firm has a market cap of $4.09 billion, a price-to-earnings ratio of 9.90, a price-to-earnings-growth ratio of 1.39 and a beta of 1.45. The stock has a 50-day moving average of $91.58 and a 200-day moving average of $94.38. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.51 and a current ratio of 0.62.

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.

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