NASDAQ$SKYW

SkyWest Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

SkyWest reported a net income of $23 million for Q3 2023.

SkyWest reported a net income of $23 million, or $0.55 per diluted share, for Q3 2023. The company secured an agreement with United Airlines to place 19 new E175 aircraft under contract and repurchased 1.2 million shares of common stock for $50 million during the quarter.

  • Q3 2023 pre-tax income was $24 million with net income reaching $23 million, equating to $0.55 per diluted share.
  • An agreement was secured with United Airlines to place 19 new E175 aircraft under contract, with deliveries scheduled from late 2024 through 2026.
  • During Q3 2023, SkyWest repurchased 1.2 million shares of common stock for $50 million at an average price of $42 per share.
  • Revenue was $766 million in Q3 2023, down $23 million, or 3%, from $789 million in Q3 2022.

Headline financials

Total Revenue

$766M

Previous: $789M-2.9%
EPS (adj)

$0.55

Previous: $0.96-42.7%
Passenger load factor

85.1%

Previous: 84.6%+0.6%
Capital Expenditures

-$14M

Previous: -$11.4M-23.0%
Free Cash Flow

$9.5M

Previous: $37M-74.3%
Net Income

$23.5M

Previous: $48.4M-51.5%
Operating Income

$49.3M

Previous: $75.6M-34.8%
Gross Profit

$1.35M

Previous: $1.85M-26.8%
Cash & Equivalents

$125M

Previous: $38.9M+222.6%
Total Assets

$7.06B

Previous: $7.45B-5.3%

Revenue & EPS history

SkyWest · Revenue · Quarterly

$766M

Q3 2023-2.9%vs Q3 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

SkyWest · $766M total across 2 segments · Q3 2023

  • Flying agreements
    $742M-2.8%
  • Lease, airport services and other
    $24.3M-6.4%

Forward guidance

This release contains forward-looking statements regarding SkyWest's future financial and operating results, plans, objectives, expectations, estimates, intentions and outlook.

Tailwinds

  • Continued demand for our product
  • Recovery from the COVID-19 pandemic
  • Economic conditions and the captain shortage on SkyWest’s business
  • Financial condition and results of operations
  • Scheduled aircraft deliveries for SkyWest in upcoming periods and the related execution of SkyWest’s fleet transition strategy and expected timing thereof

Headwinds

  • Uncertainty regarding recovery from the COVID-19 pandemic and other potential future outbreaks of infectious diseases or other health concerns
  • The consequences of such outbreaks to the travel industry and our major partners in general and the financial condition and operating results of SkyWest in particular
  • The prospects of entering into agreements with existing or other carriers to fly new aircraft
  • Ongoing negotiations between SkyWest and its major partners regarding their contractual obligations
  • Uncertainties regarding operation of new aircraft

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 Q3 2023

Historical avgQ3 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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