Core Insights - SkyWest, Inc. (SKYW) reported better-than-expected fourth-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate and showing year-over-year improvement [1][2]. Financial Performance - Quarterly earnings per share (EPS) reached $2.34, exceeding the Zacks Consensus Estimate of $1.77 and improving over 100% year-over-year [1]. - Revenues totaled $944.4 million, beating the Zacks Consensus Estimate of $904 million and reflecting a 26% year-over-year increase due to rising flying contract rates [2]. - Revenues from flying agreements, which contributed 96.7% to total revenues, grew 25.3% from the prior year's figure of $912.8 million [3]. - The airline carried 13.2% more passengers year-over-year, with departures increasing by 16.4% [3]. - Operating expenses were $800 million, up 10% from the previous year, attributed to increased flight production [5]. Contracts and Fleet Expansion - SkyWest announced a multi-year contract extension with American Airlines for a total of 74 CRJ700s and took delivery of four new E175 aircraft under an agreement with United Airlines [4]. - By the end of 2026, SkyWest is scheduled to operate 278 E175 aircraft [4]. Shareholder Returns and Capital Expenditures - During the fourth quarter, SkyWest repurchased 47,000 shares of common stock for $4.9 million, with $48 million remaining under its current share repurchase program [6]. - Capital expenditures for the reported quarter amounted to $186 million [6]. Cash and Debt Position - At the end of the fourth quarter, the company had cash and marketable securities of $801.62 million, down from $836.04 million in the prior quarter [5]. - Long-term debt (net of current maturities) was $2.14 billion, a decrease from $2.19 billion at the end of the previous quarter [5].

Core Viewpoint - SkyWest (SKYW) reported quarterly earnings of $2.34 per share, exceeding the Zacks Consensus Estimate of $1.77 per share, and showing significant growth from $0.42 per share a year ago, indicating a strong performance in the regional airline sector [1][2]. Financial Performance - SkyWest's revenues for the quarter ended December 2024 were $944.4 million, surpassing the Zacks Consensus Estimate by 4.47%, and up from $751.79 million year-over-year [2]. - The company has consistently outperformed consensus EPS estimates over the last four quarters, achieving earnings surprises of 32.20% and 12.50% in the most recent quarters [1][2]. Stock Performance - SkyWest shares have increased approximately 15.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.7% [3]. - The current Zacks Rank for SkyWest is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.80 on revenues of $886 million, while the estimate for the current fiscal year is $8.37 on revenues of $3.78 billion [7]. - The trend of estimate revisions for SkyWest is currently mixed, which may change following the recent earnings report [6]. Industry Context - The Transportation - Airline industry, to which SkyWest belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]. - Allegiant Travel (ALGT), another company in the same industry, is expected to report significant earnings growth, with a consensus EPS estimate of $1.88 per share, reflecting a year-over-year increase of 1609.1% [9].

Financial Performance - SkyWest reported Q4 2024 net income of $97 million, or $2.34 per diluted share, compared to $18 million, or $0.42 per diluted share, in Q4 2023, representing a 439% increase in net income year-over-year[2] - For the full year 2024, SkyWest achieved net income of $323 million, or $7.77 per diluted share, compared to $34 million, or $0.77 per diluted share, in 2023, marking a 853% increase in annual net income[2] - Q4 2024 revenue was $944 million, up $192 million, or 26%, from $752 million in Q4 2023, driven by a 20% increase in block hour production[4] - Operating expenses in Q4 2024 were $800 million, an increase of $76 million, or 10%, from $724 million in Q4 2023, primarily due to increased flight production[5] Cash and Debt Management - SkyWest had $802 million in cash and marketable securities as of December 31, 2024, down from $836 million at September 30, 2024[6] - Total debt remained flat at $2.7 billion as of December 31, 2024, down from $3.0 billion at the end of 2023[6] Fleet and Operations - SkyWest took delivery of four new E175 aircraft in Q4 2024 and has a multi-year contract extension with American Airlines for 74 CRJ700s[3] - By the end of 2026, SkyWest is scheduled to operate a total of 278 E175 aircraft, with 25 deliveries completed in 2024 and 8 anticipated in 2025[9] Shareholder Actions - The company repurchased 47,000 shares of common stock for $4.9 million during Q4 2024, with an average price per share of $104.51[7] Asset Management - As of December 31, 2024, SkyWest's total assets were $7.14 billion, an increase from $7.03 billion at the end of 2023[18] Operational Metrics - Total block hours increased by 20.5% to 350,318 for the three months ended December 31, 2024, compared to 290,754 in 2023[21] - Passengers carried rose by 13.2% to 11,231,510 in Q4 2024, up from 9,925,655 in Q4 2023[21] - Departures increased by 16.4% to 206,588 in Q4 2024, compared to 177,433 in Q4 2023[21] - E175 block hours grew by 19.4% to 211,519 in Q4 2024, from 177,104 in Q4 2023[21] - CRJ900 block hours surged by 37.9% to 23,711 in Q4 2024, compared to 17,198 in Q4 2023[21] - Average trip length decreased slightly by 0.4% to 443 miles in Q4 2024, from 445 miles in Q4 2023[21] - Passenger load factor declined by 1.2 percentage points to 82.2% in Q4 2024, down from 83.4% in Q4 2023[21] - Adjusted flight completion remained stable at 99.9% for both Q4 2024 and Q4 2023[21] - Raw flight completion decreased by 0.5 percentage points to 99.0% in Q4 2024, compared to 99.5% in Q4 2023[21] - For the year ended December 31, 2024, total block hours increased by 13.3% to 1,292,040 from 1,140,443 in 2023[21]

Company Performance - SkyWest (SKYW) closed at $116.06, reflecting a +1.1% increase compared to the previous day, outperforming the S&P 500's daily gain of 0.61% [1] - Over the past month, SkyWest shares have risen by 11.1%, surpassing the Transportation sector's gain of 4.09% and the S&P 500's gain of 2.08% [1] Upcoming Earnings - SkyWest is set to disclose its earnings on January 30, 2025, with projected earnings of $1.77 per share, indicating a year-over-year growth of 321.43% [2] - The consensus estimate anticipates revenue of $903.97 million, representing a 20.24% increase from the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for SkyWest reflect positive sentiment regarding the company's business operations and profit generation capabilities [3] - Upward revisions in estimates are often linked to anticipated stock price performance, suggesting potential investment opportunities [4] Zacks Rank and Valuation - SkyWest currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 0.2% in the past month [5] - The company has a Forward P/E ratio of 13.72, which is a premium compared to the industry's average Forward P/E of 9.36 [6] Industry Context - The Transportation - Airline industry, to which SkyWest belongs, has a Zacks Industry Rank of 28, placing it in the top 12% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the potential for investment in well-ranked sectors [7]

Group 1 - SkyWest's stock closed at $109.05, reflecting a decrease of -0.77% from the previous trading day, while the S&P 500 lost 0.21% [1] - Over the past month, SkyWest shares have gained 10.56%, contrasting with a 1.8% loss in the Transportation sector and a 1.56% loss in the S&P 500 [1] - The upcoming earnings report on January 30, 2025, is expected to show an EPS of $1.77, representing a 321.43% increase from the same quarter last year, with revenue forecasted at $903.97 million, a 20.24% increase [2] Group 2 - Recent changes in analyst estimates for SkyWest indicate a favorable outlook on the company's business health and profitability [3] - The Zacks Rank system, which incorporates estimate changes, has a history of outperforming, with 1 stocks returning an average annual gain of +25% since 1988 [5] - SkyWest currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate having moved 0.2% higher over the past month [5] Group 3 - SkyWest is trading at a Forward P/E ratio of 13.14, which is higher than the industry average of 9.16, suggesting it is trading at a premium [6] - The Transportation - Airline industry has a Zacks Industry Rank of 29, placing it in the top 12% of over 250 industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a strong performance potential for SkyWest within its industry [7]

Core Viewpoint - SkyWest (SKYW) has shown exceptional stock performance in 2024, with a 91.8% year-over-year increase, significantly outperforming the industry average of 31.1% [1][2]. Group 1: Growth Drivers - The increase in air travel demand, particularly in the leisure sector, is a primary factor driving growth for SkyWest [3]. - SkyWest reported an 18.7% year-over-year revenue growth in the first nine months of 2024, primarily due to a 19.1% rise in flying agreements, which now account for 96.8% of total revenues [3]. - The supply chain challenges faced by Boeing have inadvertently benefited SkyWest by improving pilot staffing, as major airlines have slowed or paused pilot hiring [4]. Group 2: Fleet and Operations - SkyWest operates a fleet of approximately 500 aircraft, serving over 240 destinations across North America, and carried more than 38 million passengers in 2023 [5]. - The company is modernizing its fleet with agreements to operate 278 E175 aircraft by the end of 2026 and has acquired a 25% stake in regional carrier Contour Airlines [5]. Group 3: Future Outlook - With strong air travel demand expected to continue, SkyWest's stock is likely to maintain positive market performance in the upcoming year [6]. - The Zacks Consensus Estimate for SkyWest's fourth quarter of 2024, full-year 2024, and full-year 2025 has been revised upward by 3%, 3%, and 5.3% respectively over the past 60 days [7].

Company Overview - SkyWest (SKYW) operates regional jets for major U.S. airlines and has a strong track record of meeting the requirements of its airline partners [9] - The company is headquartered in St. George, Utah, and has been in operation since 1972 [9] Industry Performance - The airline industry, particularly the segment SKYW belongs to, has a Zacks Industry Rank of 29 out of 249, placing it in the top 12% of Zacks Industries [5] - The industry's performance is crucial, as studies indicate that 50% of a stock's price movement is directly related to its industry group [5] Financial Performance - SKYW's shares have gained 97.8% over the past year, significantly outperforming the industry's growth of 30.4% [8] - The Zacks Consensus Estimate for SKYW's current and next-year earnings has been revised upward by 4.1% and 7.1%, respectively, indicating broker confidence [7] Growth Drivers - Increased demand for SKYW's older aircraft due to Boeing's production issues is expected to enhance capacity and revenue [10] - The uptick in air travel demand, particularly in leisure travel, is a significant growth driver for SKYW [13] - Lower capital expenditure is anticipated to support SKYW's free cash flow, boosting shareholder returns [10] Challenges and Opportunities - Production delays at Boeing have negatively impacted large airlines, leading to a slowdown in pilot hiring and potentially increasing SKYW's fleet utilization as employees may return to regional airlines [4] - The current supply-chain issues in the industry may provide SKYW with a competitive advantage in staffing and operational efficiency [4]

Company Overview - SkyWest (SKYW) has experienced a share price decline of 6.55% over the past month, underperforming the Transportation sector's loss of 5.95% and the S&P 500's loss of 0.71% [1] - The company is projected to report earnings of $1.77 per share, reflecting a year-over-year growth of 321.43%, with revenue estimates at $901.47 million, indicating a 19.91% increase from the previous year [7] Financial Performance - For the full year, earnings are estimated at $7.16 per share and revenue at $3.48 billion, showing significant changes of +829.87% and +18.71% respectively from the prior year [2] - The Zacks Consensus EPS estimate has seen a slight upward revision of 0.02% over the past month, indicating positive sentiment towards the company's performance [3] Industry Context - The Transportation - Airline industry holds a Zacks Industry Rank of 29, placing it within the top 12% of over 250 industries, suggesting strong performance relative to peers [4] - SkyWest's Forward P/E ratio stands at 14.29, which is higher than the industry average Forward P/E of 10, indicating a premium valuation [9] Analyst Insights - The Zacks Rank system, which ranks stocks from 1 (Strong Buy) to 5 (Strong Sell), shows that SkyWest currently holds a 1 ranking, which has historically yielded an average annual return of +25% since 1988 [3] - Recent revisions to analyst forecasts for SkyWest are seen as a positive indicator of the company's business outlook, as these changes often correlate with stock price performance [8]

Core Viewpoint - SkyWest (SKYW) has shown a downtrend recently, losing 7.9% over the past two weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1] Group 1: Technical Analysis - The formation of a hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding [1] - A hammer pattern occurs when a stock opens lower, makes a new low, but then closes near or above its opening price, signaling a potential loss of control by bears [2] - Hammer candles can appear on various timeframes and should be used alongside other bullish indicators for confirmation [2] Group 2: Fundamental Analysis - There has been a positive trend in earnings estimate revisions for SkyWest, which is a bullish indicator, as it typically leads to price appreciation [3] - Over the last 30 days, the consensus EPS estimate for the current year has increased by 0%, indicating analysts expect better earnings than previously predicted [3] - SkyWest holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, suggesting strong potential for outperformance [3]

Transportation Sector Overview - The Zacks Transportation sector includes airlines, railroads, package delivery companies, and truckers, showcasing its diversified nature [2] - Most sector participants have performed well in 2024 due to multiple tailwinds, with expectations of continued strong performance in 2025 [3] Key Tailwinds in 2024 - Airline stocks benefited from improved air-travel demand post-pandemic and normalized economic activities, with record-breaking traffic during Thanksgiving and higher summer passenger volumes [4] - E-commerce demand remained strong, benefiting packaging companies, while transportation companies improved their financial health [5] - Many companies increased dividends, providing a steady income source and cushion against market uncertainty [6] - Companies cut costs to combat weak demand from high inflation, and declining oil prices positively impacted transportation companies' bottom lines [7] 2025 Projections - The International Air Transport Association (IATA) projects global passenger counts to exceed 5 billion in 2025, indicating continued growth for airlines [8] - Transportation stocks like Wabtec Corp, United Airlines Holdings, Southwest Airlines, SkyWest, and ZIM Integrated Shipping Services are expected to perform well in 2025 [9] Company Highlights Wabtec Corp (WAB) - Wabtec offers technology-based locomotives and services for the freight rail and passenger transit industries, with a strong balance sheet and shareholder-friendly stance [10] - Expected earnings growth rate of 13.60% for 2025, with a 4.1% improvement in Zacks Consensus Estimate over the past 90 days [11] - Market capitalization of $34.87 billion and Zacks Rank 2 [11] United Airlines Holdings (UAL) - United Airlines benefits from strong air travel demand and new routes, with an environment-friendly approach [12] - Expected earnings growth rate of 14.15% for 2025, with a 5.8% improvement in Zacks Consensus Estimate over the past 90 days [13] - Market capitalization of $31.75 billion and Zacks Rank 2 [13] Southwest Airlines (LUV) - Southwest Airlines anticipates a 3.5%-5.5% year-over-year increase in Q4 2024 unit revenues, driven by healthy travel demand [14] - Expected earnings growth rate of 110.13% for 2025, with a 21.7% improvement in Zacks Consensus Estimate over the past 90 days [15] - Market capitalization of $20.06 billion and Zacks Rank 1 [15] SkyWest (SKYW) - SkyWest focuses on fleet modernization and has agreements with major airlines like United Airlines and Alaska Airlines [16] - Expected earnings growth rate of 16.6% for 2025, with a 7.1% improvement in Zacks Consensus Estimate over the past 90 days [17] - Market capitalization of $4.31 billion and Zacks Rank 1 [17] ZIM Integrated Shipping Services (ZIM) - ZIM provides container shipping services internationally, with a Zacks Consensus Estimate for 2025 earnings improving over 100% in the past 90 days [18] - Market capitalization of $2.45 billion and Zacks Rank 1 [18]