SkyWest (NASDAQ:SKYW) Releases Earnings Results, Beats Estimates By $0.01 EPS

SkyWest (NASDAQ:SKYW) announced its quarterly earnings data on Thursday. The transportation company reported $3.08 earnings per share for the quarter, topping the consensus estimate of $3.07 by $0.01, FiscalAI reports. The business had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.14 billion. SkyWest had a return on equity of 14.60% and a net margin of 9.70%. SkyWest’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same period in the prior year, the company earned $2.81 EPS.

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

• Third-quarter results were strong: SkyWest reported $120 million in net income, or $3.08 per diluted share, on $1.1 billion of revenue, while completing 99.9% of more than 230,000 flights.
• Fuel costs pressured the prorate business. Prorate fuel expense rose to $66 million from $34 million a year earlier as the average fuel price increased to $4.56 per gallon; management said higher yields are offsetting only part of the increase.
• SkyWest expects 2026 block hours to increase approximately 5%, with full-year EPS around $10.60, but is assuming fourth-quarter fuel costs of $4.90 per gallon. For 2027, block hours are expected to rise 1%–2% and EPS to be similar to 2026.
• The company is continuing its fleet renewal and expansion. SkyWest expects to receive 18 new E175s in 2027, reach roughly 300 E175s by year-end 2027, and deploy CRJ450 aircraft later this year, supporting longer-term cash earnings and an all-dual-class fleet.
• Management emphasized balance-sheet strength and capital flexibility, citing $1 billion of debt reduction since the end of 2022, more than $1.5 billion of unpledged assets, $238 million remaining under its buyback authorization, and planned 2027 capital expenditures of approximately $825 million.

SkyWest Price Performance

SKYW traded down $14.21 on Friday, reaching $82.33. The stock had a trading volume of 828,849 shares, compared to its average volume of 253,244. SkyWest has a fifty-two week low of $77.89 and a fifty-two week high of $117.72. The firm has a 50-day moving average of $96.46 and a 200-day moving average of $96.13. The company has a current ratio of 0.57, a quick ratio of 0.46 and a debt-to-equity ratio of 0.59. The company has a market capitalization of $3.20 billion, a price-to-earnings ratio of 7.97, a price-to-earnings-growth ratio of 1.40 and a beta of 1.47.

SkyWest announced that its Board of Directors has authorized a share repurchase program on Thursday, July 23rd that permits the company to buy back $250 million in outstanding shares. This buyback authorization permits the transportation company to repurchase up to 6.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Key Stories Impacting SkyWest

Here are the key news stories impacting SkyWest this week:

• Positive Sentiment: SkyWest reported third-quarter EPS of $3.08, slightly above the $3.07 FactSet consensus, while EPS increased from $2.81 a year earlier. Quarterly net income reached approximately $120 million. SkyWest Q3 EPS Results
• Positive Sentiment: Revenue rose 6.4% year over year to $1.12 billion, and profitability metrics remained solid, including a 9.78% net margin and 14.58% return on equity. SkyWest Third-Quarter Results
• Neutral Sentiment: Management expects 2026 EPS of approximately $10.60 and is targeting 1%-2% block-hour growth in 2027, suggesting continued expansion but at a relatively moderate pace. SkyWest 2026 EPS and 2027 Growth Outlook
• Negative Sentiment: SkyWest lowered its 2026 guidance, changing the investment story from one centered on stronger growth to one emphasizing more limited near-term earnings and capacity expansion. The revision raised concerns about future upside. How Lowered 2026 Guidance Changed SkyWest’s Investment Story
• Negative Sentiment: Deutsche Bank downgraded SKYW from Buy to Hold and reduced its price target from $130 to $105. Although the revised target still implies potential upside, the downgrade signals reduced confidence after the guidance update. Deutsche Bank Downgrades SkyWest
• Negative Sentiment: Revenue fell short of the broader $1.14 billion analyst estimate, and some data providers characterized EPS as missing their consensus forecast of $3.13. This mixed earnings picture likely amplified the market’s reaction to the weaker outlook. SkyWest Q3 Earnings and Revenue Analysis

Insider Activity at SkyWest

In other news, insider Wade Steel sold 22,000 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $111.44, for a total value of $2,451,680.00. Following the completion of the transaction, the insider owned 55,438 shares of the company’s stock, valued at $6,178,010.72. This represents a 28.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 1.50% of the company’s stock.

Wall Street Analysts Forecast Growth

SKYW has been the topic of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft cut SkyWest from a “buy” rating to a “hold” rating and set a $105.00 target price on the stock. in a research report on Friday. TD Cowen dropped their target price on shares of SkyWest from $123.00 to $116.00 and set a “buy” rating for the company in a report on Friday, October 2nd. Weiss Ratings upgraded shares of SkyWest from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday. Finally, Cantor Fitzgerald set a $116.00 price target on shares of SkyWest in a report on Friday, October 2nd. Two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $111.40.

SkyWest Company Profile

SkyWest, Inc (NASDAQ: SKYW) is an airline holding company that operates regional passenger air service in the United States. Its primary subsidiary, SkyWest Airlines, connects smaller and midsized communities with larger airline hubs and provides scheduled flights under capacity-purchase agreements with major airline partners.

SkyWest Airlines operates flights under the United Express, Delta Connection and Alaska Airlines brands, serving destinations throughout the United States and select locations in Canada, Mexico and the Bahamas.