NASDAQ$SKYW

SkyWest Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Net income decreased compared to the same quarter last year, impacted by deferred revenue and reduced block hour production.

SkyWest reported a net income of $15 million for Q2 2023, a decrease from $54 million in Q2 2022. Revenue was $726 million, down 9% from $799 million in the previous year, with results reflecting the deferral of $60 million in revenue and a decrease in block hour production.

  • Reported Q2 2023 net income of $15 million, or $0.35 per diluted share.
  • Revenue was $726 million, a 9% decrease compared to Q2 2022.
  • Deferred $60 million in revenue during Q2 2023 due to modified terms relating to fixed monthly cash payments.
  • Repurchased 3.3 million shares of common stock for $94 million during Q2 2023.

Headline financials

Total Revenue

$726M

Previous: $799M-9.2%
EPS (adj)

$0.35

Previous: $1.07-67.3%
Adjusted flight completion

99.9%

No prior period
Raw flight completion

98.9%

No prior period
Passenger load factor

85.5%

Previous: 86.0%-0.6%
Capital Expenditures

-$11.3M

Previous: -$9.53M-19.0%
Free Cash Flow

$4.08M

Previous: $44.4M-90.8%
Net Income

$15.4M

Previous: $54M-71.4%
Operating Income

$31.9M

Previous: $88.6M-64.0%
Gross Profit

$1.35M

Previous: $1.85M-26.8%
Cash & Equivalents

$114M

Previous: $96.1M+19.1%
Total Assets

$7.12B

Previous: $7.34B-3.0%

Revenue & EPS history

SkyWest · Revenue · Quarterly

$726M

Q2 2023-9.2%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

SkyWest · $726M total across 2 segments · Q2 2023

  • Flying agreements
    $700M-9.5%
  • Lease, airport services and other
    $25.2M-0.2%

Forward guidance

SkyWest anticipates adding two E175 aircraft in Q4 2023 and one E175 aircraft in 2024 under a flying contract with Delta Air Lines. SkyWest also anticipates adding one E175 aircraft in 2025 under a flying contract with Alaska Airlines.

Tailwinds

  • Adding two E175 aircraft in Q4 2023 under Delta Air Lines contract.
  • Adding one E175 aircraft in 2024 under Delta Air Lines contract.
  • Adding one E175 aircraft in 2025 under Alaska Airlines contract.
  • Scheduled to operate a total of 239 E175 aircraft by the end of 2025.
  • Strong demand for products.

Headwinds

  • Timing of future deliveries is subject to change.
  • Revenue decreased by 9% compared to Q2 2022.
  • Deferred $60 million in revenue during Q2 2023.
  • Block hour production decreased in Q2 2023 compared to Q2 2022.
  • Cash and marketable securities decreased from $1.0 billion at December 31, 2022 to $862 million at June 30, 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.4%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+6.3%

Avg return

30 days after

52%

34 / 66 earnings

Positive

+22.7%

Q1 2020

Best reaction

-24.0%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.1%-13.2%-8.6%
Q4 2025-5.0%+1.6%+2.5%
Q3 2025+5.5%+3.8%+6.7%
Q2 2025-0.1%-2.8%-7.7%
Q1 2025-1.3%+0.1%+9.9%
Q4 2024+3.6%+1.3%-15.3%
Q3 2024+5.0%+8.0%+18.9%
Q2 2024-7.7%-6.6%-8.2%
Q1 2024+3.2%+2.4%+5.2%
Q4 2023+9.9%+11.8%+21.5%
Q3 2023+11.2%+10.9%+22.1%
Q2 2023+10.8%+10.3%-0.1%
Q1 2023+19.6%+15.8%+28.4%
Q4 2022-9.2%-8.6%+2.1%
Q3 2022-4.1%-3.9%-2.0%
Q2 2022+9.1%+8.6%-1.6%
Q1 2022+2.5%+0.5%-6.7%
Q4 2021-24.0%-15.5%-34.1%
Q3 2021-5.3%-2.8%-9.7%
Q2 2021-0.9%-2.5%+18.7%
Q1 2021-2.7%-5.9%-4.0%
Q4 2020+3.2%+7.9%+32.7%
Q3 2020+4.4%+6.0%+55.7%
Q2 2020-8.6%-4.4%+21.1%
Q1 2020+22.7%+7.9%+77.5%
Q4 2019-9.4%-5.1%-25.5%
Q3 2019+0.8%+4.1%+6.1%
Q2 2019-2.6%-10.1%-8.2%
Q1 2019+1.1%+3.1%+0.4%
Q4 2018+1.7%+3.2%+3.8%
Q3 2018+13.1%+10.3%+9.6%
Q2 2018+8.4%+7.2%+14.5%
Q1 2018+5.2%+6.1%+6.2%
Q4 2017-2.9%-5.2%-1.8%
Q3 2017+1.9%+2.8%+10.6%
Q2 2017-0.3%-3.6%-9.3%
Q1 2017+3.8%+3.6%-1.4%
Q4 2016-4.6%-9.5%-0.8%
Q3 2016+0.5%+0.2%+27.2%
Q2 2016-1.1%-6.3%-6.2%
Q1 2016+14.2%
Q4 2015+0.3%
Q3 2015-8.9%
Q2 2015+17.4%
Q1 2015+17.2%
Q4 2014+7.5%
Q3 2014+11.9%
Q2 2014-10.8%
Q1 2014-0.9%
Q4 2013+2.4%
Q3 2013-5.2%
Q2 2013+0.5%
Q1 2013-7.7%
Q4 2012-1.9%
Q3 2012-2.2%
Q2 2012+19.1%
Q1 2012-2.2%
Q1 2011+3.1%
Q4 2009-3.3%
Q1 2010-3.3%
Q4 2011-3.3%
Q3 2010+2.4%
Q3 2011+2.4%
Q4 2010-1.5%
Q2 2010-1.5%
Q2 2011-1.5%

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