Why SkyWest's Shares Dropped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of airline SkyWest (NAS: SKYW) fell as much as 10% today after announcing passenger traffic data.
So what: The company said that September passenger boardings increased 5.3% to 4.8 million, and the company saw a 1% increase in revenue per passenger. The company's load factor also increased to 80.2% from 79.9% a year ago.
Now what: Clearly, expectations were set higher than SkyWest could deliver, but the figures are still headed in the right direction. Shares are trading at 8.4 times earnings, so even lowered expectations will leave investors with some value. Before reacting too harshly, I think we should wait for quarterly earnings and see whether the company can continue the strong earnings reported last quarter.
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The article Why SkyWest's Shares Dropped originally appeared on Fool.com.Fool contributor Travis Hoium and The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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