Group 1 - SkyWest (NASDAQ: SKYW) is highlighted as a notable company in the aviation sector, particularly in the context of current economic uncertainties [1] - The management of SkyWest has a proven track record, suggesting potential resilience in navigating industry challenges [1] Group 2 - Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, emphasizing value and growth prospects [1] - The service offers subscribers access to a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Viewpoint - SkyWest (SKYW) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors [4]. - For SkyWest, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to a rise in stock price [5]. Earnings Estimate Revisions - SkyWest is projected to earn $9.28 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 19.4% [8]. - Over the past three months, the Zacks Consensus Estimate for SkyWest has risen by 10.9%, indicating a positive trend in analyst expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - SkyWest's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for near-term stock performance [10].

Core Viewpoint - SkyWest (SKYW) shows potential for significant upside, with a mean price target of $116.60 indicating a 31.7% increase from the current price of $88.52 [1] Price Targets - The mean estimate consists of five short-term price targets with a standard deviation of $10.74, suggesting variability among analysts [2] - The lowest estimate of $100 indicates a 13% increase, while the highest estimate predicts a 43.5% surge to $127 [2] - A low standard deviation indicates a high degree of agreement among analysts regarding price movement [9] Analyst Sentiment - Analysts are optimistic about SkyWest's earnings prospects, as indicated by upward revisions in EPS estimates [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 3.1%, with three estimates moving higher and no negative revisions [12] - SkyWest holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Limitations of Price Targets - Price targets can mislead investors, as empirical research shows they rarely indicate actual stock price movements [7] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8] - While price targets should not be ignored, they should be approached with skepticism and not be the sole basis for investment decisions [10]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's future growth potential by examining projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best overall value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to simplify stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Stock Highlight: SkyWest (SKYW) - SkyWest operates as a regional airline in the U.S. and currently holds a Zacks Rank of 3 (Hold) with a VGM Score of A [11] - The company is projected to achieve year-over-year earnings growth of 17.9% for the current fiscal year, supported by a Growth Style Score of B [11] - Recent analyst revisions have increased the Zacks Consensus Estimate for fiscal 2025 by $0.15 to $9.16 per share, with an average earnings surprise of 17.1% [12]

SkyWest, Inc. (SKYW) reported better-than-expected first-quarter 2025 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved on a year-over-year basis.Quarterly earnings per share (EPS) of $2.42 outpaced the Zacks Consensus Estimate of $2.04 and improved 66% year over year. Revenues of $948.5 million beat the Zacks Consensus Estimate of $931.4 million and improved 18% year over year.Revenues from flying agreements (contributing 96.5% to the top line) grew 17.6% from t ...

Financial Performance - Total operating revenues for the three months ended March 31, 2025, were $948.5 million, an 18.0% increase from $803.6 million for the same period in 2024[105] - Net income for the three months ended March 31, 2025, was $100.6 million, or $2.42 per diluted share, compared to $60.3 million, or $1.45 per diluted share, for the same period in 2024[105] - Operating revenues rose by 18.0% to $948,455,000 in Q1 2025 from $803,614,000 in Q1 2024[114] - Segment profit for SkyWest Airlines and SWC rose to $54.3 million in Q1 2025, a significant increase of $49.3 million or 986.3% compared to $5.0 million in Q1 2024[136] Operational Metrics - The number of aircraft in scheduled service or under contract increased from 475 as of March 31, 2024, to 488 as of March 31, 2025, representing a 2.7% increase[106] - Block hours increased from 289,801 for the three months ended March 31, 2024, to 352,155 for the same period in 2025, a rise of 21.5%[106] - Departures increased from 169,432 for the three months ended March 31, 2024, to 201,838 for the same period in 2025, a growth of 19.1%[108] - The number of passengers carried increased by 13.6% to 10,390,364 in Q1 2025 from 9,149,453 in Q1 2024[113] - Block hour production for SkyWest Airlines and SWC increased by 21.5%, from 289,801 hours in Q1 2024 to 352,155 hours in Q1 2025[137] Revenue Sources - Capacity purchase revenue increased by $108.0 million, or 15.9%, for the three months ended March 31, 2025, primarily due to an increase in completed block hours[107] - Prorate and SWC revenue increased by $29.7 million, or 29.4%, for the three months ended March 31, 2025, compared to the same period in 2024[107] - Capacity purchase agreements flight operations revenue increased by 17.5% to $639,153,000, driven by a 21.5% rise in block hour production[115] - Lease, airport services, and other revenues grew by 28.2% to $32,461,000, attributed to an increase in leased assets and lease rates[121] - SkyWest Airlines and SWC operating revenues increased by $154.8 million, or 23.9%, from $646.8 million in Q1 2024 to $801.7 million in Q1 2025[138] Expenses - Total operating expenses rose by $105.0 million, or 14.9%, for the three months ended March 31, 2025, due to increased direct operating expenses from a higher number of flights[108] - Total operating expenses increased by 14.9% to $809,078,000, with aircraft maintenance expenses rising by 43.8% to $209,100,000[122] - Salaries, wages, and benefits expenses increased by $26.3 million, or 7.5%, due to higher direct labor costs from increased flight operations[139] - Aircraft maintenance, materials, and repairs expenses surged by $60.4 million, or 42.8%, primarily due to increased maintenance activity on the CRJ fleet[140] Cash Flow and Debt - Cash and cash equivalents decreased from $801.6 million as of December 31, 2024, to $750.9 million as of March 31, 2025, a decline of $50.7 million[148] - Net cash provided by operating activities was $171.0 million for Q1 2025, an increase of $13.4 million or 8.5% compared to $157.6 million in Q1 2024[150] - Cash used in investing activities increased significantly to $66.1 million in Q1 2025 from $0.6 million in Q1 2024, reflecting higher capital expenditures[153] - As of March 31, 2025, the company had $2.6 billion in long-term debt, with an average effective interest rate of approximately 4.3%[162] Tax and Interest Rates - The average effective interest rate for Q1 2025 was 4.3%, compared to 4.1% in Q1 2024, while outstanding debt decreased from $2.9 billion to $2.6 billion[129] - The effective income tax rate decreased to 16.7% in Q1 2025 from 24.8% in Q1 2024, primarily due to a higher discrete tax benefit from employee equity awards[132] Future Commitments and Risks - The company plans to add a total of 15 new E175 aircraft with United from 2025 to 2026 and one new E175 aircraft with Alaska in 2025[101] - The company has a firm purchase commitment for 16 new E175 aircraft and 12 used CRJ900 airframes, with anticipated delivery dates extending into 2026 and 2025 respectively[159] - The company has guaranteed $24.0 million in promissory notes of third parties, secured by aircraft and engines[164] - The unsecured debt payable to the U.S. Treasury of $200.6 million had a fixed interest rate of 1.0% as of March 31, 2025, with an increase scheduled to the applicable SOFR rate plus 2.0% after five years[168] - The company expects continued impacts from inflation on costs, which may not be fully offset by price increases under capacity purchase agreements[169] - Seasonal fluctuations affect operations, with increased travel during summer months and decreased travel from November to February[166] - The company bears the economic risk of fuel price fluctuations on prorate and SWC operations, with a hypothetical 25% increase in fuel prices resulting in an additional $6.1 million in fuel expenses for the three months ended March 31, 2025[167] - The company has guaranteed obligations under the United Express Agreement and Delta Connection Agreement for the E175 aircraft[164]

SkyWest (SKYW) Q1 2025 Earnings Call April 25, 2025 12:51 AM ET Company Participants Robert Simmons - Chief Financial OfficerEric Woodward - CAOChip Childs - CEO, President and DirectorWade Steel - CCOSavanthi Syth - MD - Airlines & Advance Air MobilityDuane Pfennigwerth - Senior MDTom Fitzgerald - VP - Equity Research Conference Call Participants Catherine O'Brien - AnalystMichael Linenberg - Analyst Operator Ladies and gentlemen, thank you for standing by. My name is John, and I will be your conference op ...

SkyWest, Inc. (NASDAQ:SKYW) Q1 2025 Earnings Conference Call April 24, 2025 3:30 AM ET Company Participants Rob Simmons - Chief Financial Officer Eric Woodward - Chief Accounting Officer Chip Childs - President and Chief Executive Officer Wade Steel - Chief Commercial Officer Conference Call Participants Catherine O'Brien - Goldman Sachs Savi Syth - Raymond James Mike Linenberg - Deutsche Bank Duane Pfennigwerth - Evercore ISI Tom Fitzgerald - TD Cowen Operator Ladies and gentlemen, thank you for standing b ...

SkyWest (SKYW) came out with quarterly earnings of $2.42 per share, beating the Zacks Consensus Estimate of $2.04 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.63%. A quarter ago, it was expected that this regional airline would post earnings of $1.77 per share when it actually produced earnings of $2.34, delivering a surprise of 32.20%.Over the last four quarters, the company ...

SkyWest (SKYW) Q1 2025 Earnings Call April 24, 2025 04:30 PM ET Company Participants Robert Simmons - Chief Financial OfficerEric Woodward - CAOChip Childs - CEO, President and DirectorWade Steel - CCOSavanthi Syth - MD - Airlines & Advance Air MobilityDuane Pfennigwerth - Senior MDTom Fitzgerald - VP - Equity Research Conference Call Participants Catherine O'Brien - AnalystMichael Linenberg - Analyst Operator Ladies and gentlemen, thank you for standing by. My name is John, and I will be your conference op ...