SkyWest Earnings Preview

Motley Fool Staff
Updated

SkyWest (NAS: SKYW) didn't hit the Street's expectations last quarter, but investors hope it will rebound this quarter. The company will unveil its latest earnings on Thursday. SkyWest through its wholly owned subsidiaries, SkyWest Airlines and Atlantic Southeast Airlines, offers scheduled passenger service.

What analysts say:

  • Buy, sell, or hold?: Analysts don't like SkyWest as much as competitor Hawaiian Holdings overall. Five out of seven analysts rate Hawaiian Holdings a buy compared to one of seven for SkyWest. While analysts still rate the stock a moderate sell, they are a little more optimistic about it compared to three months ago.

  • Revenue forecasts: On average, analysts predict $904.2 million in revenue this quarter. That would represent a rise of 13.6% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is a loss of $0.35 per share. Estimates range from a loss of $0.35 to a loss of $0.34.

What our community says:
CAPS All-Stars are solidly backing the stock, with 80.9% granting it an outperform rating. Most of the community agrees with the All-Stars, with 79.8% awarding it a rating of outperform. Fools are bullish on SkyWest and haven't been shy with their opinions lately, logging 108 posts in the past 30 days. SkyWest's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:

Now, a look at how efficient management has been at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. SkyWest has seen increasing gross margins year-over-year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. Here are SkyWest's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

55.4%

55.8%

57.3%

76.0%

Operating Margin

2.8%

2.0%

0%

6.5%

Net Margin

0%

0.2%

(1.3%)

4.7%

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Earnings estimates provided by Zacks.

At the time thisarticle was published

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