Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies through various valuation metrics [2][3] - Zacks has developed a Style Scores system to categorize stocks, with a focus on those that have high Zacks Ranks and "A" grades in the Value category [3] Company Analysis: SkyWest (SKYW) - SkyWest (SKYW) holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential as a value stock [4] - The stock has a P/E ratio of 11.08, significantly lower than the industry average of 16.57, suggesting it may be undervalued [4] - Over the past 12 months, SKYW's Forward P/E has fluctuated between 9.16 and 14.41, with a median of 11.06 [4] - SKYW's P/CF ratio is 5.96, compared to the industry's average of 12, indicating a solid cash outlook [5] - The P/CF ratio has ranged from 5.04 to 7.64 over the last year, with a median of 6.31 [5] Company Analysis: United Airlines (UAL) - United Airlines (UAL) also holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, making it a strong candidate for value investment [6] - The stock is currently trading at a forward earnings multiple of 8.08, which is lower than the industry average P/E of 16.57 [6] - UAL's PEG ratio stands at 0.69, compared to the industry's average of 0.83, indicating potential undervaluation [6] - Over the last 12 months, UAL's P/E has varied from 3.63 to 9.45, with a median of 5.01 [7] - The P/B ratio for UAL is 2.76, significantly lower than the industry's average of 5.15, further supporting its value proposition [7] Conclusion - Both SkyWest and United Airlines exhibit strong value characteristics, with favorable P/E, P/CF, and PEG ratios compared to their respective industry averages, indicating they are likely undervalued at present [8]

Financial Performance - Total operating revenues for the year ended December 31, 2024, were $3.5 billion, a 20.2% increase from $2.9 billion in 2023[211]. - Net income for 2024 was $323.0 million, or $7.77 per diluted share, compared to $34.3 million, or $0.77 per diluted share, in 2023[211]. - Operating revenues for SkyWest Airlines and SWC increased by $513.2 million, or 21.5%, from 2023 to 2024[245]. - SkyWest Airlines and SWC segment profit was $138.9 million for 2024, a significant recovery from a loss of $165.2 million in 2023[243]. - SkyWest Leasing segment operating revenues increased by $79.3 million, or 14.6%, to $622.6 million in 2024 from $543.3 million in 2023[250]. - SkyWest Leasing segment profit rose by $87.7 million, or 42.7%, to $293.3 million in 2024 compared to $205.5 million in 2023[252]. Operational Metrics - The number of aircraft in scheduled service or under contract increased from 485 in 2023 to 492 in 2024, a 1.4% increase[212]. - Block hours increased from 1.14 million in 2023 to 1.29 million in 2024, representing a 13.3% increase[212]. - Departures increased from 691,962 in 2023 to 766,742 in 2024, a 10.8% increase[216]. - The average passenger trip length increased by 2.4%, from 453 miles in 2023 to 464 miles in 2024[219]. Revenue and Expense Analysis - Capacity purchase revenue rose by $502.4 million, or 20.5%, due to increased completed block hours and recognition of previously deferred revenue[213]. - Prorate and SWC revenue increased by $76.0 million, or 19.9%, driven by a higher number of passengers carried[213]. - Total operating expenses increased by $201.9 million, or 7.1%, primarily due to increased direct operating expenses from more flights operated[215]. - Salaries, wages, and benefits increased by $141.3 million, or 10.7%, due to higher direct labor costs from increased flight operations[246]. - Aircraft maintenance expenses rose by $39.2 million, or 5.8%, primarily due to higher flight volume[229]. Cash Flow and Debt Management - Cash and cash equivalents increased by $79.1 million, or 53.3%, to $227.4 million as of December 31, 2024, from $148.3 million in 2023[258]. - Total long-term debt decreased by $0.3 billion, or 10%, to $2.7 billion as of December 31, 2024, from $3.0 billion in 2023[254]. - Net cash provided by operating activities was $692.5 million in 2024, down $43.9 million, or 6.0%, from $736.3 million in 2023[258]. - Cash used in investing activities surged by $205.4 million, or 884.3%, to $228.6 million in 2024 from $23.2 million in 2023[258]. - Cash used in financing activities decreased by $283.1 million, or 42.4%, to $384.8 million in 2024 compared to $667.8 million in 2023[265]. Future Commitments and Investments - The fleet is scheduled to add a total of 15 new E175 aircraft with United from 2025 to 2026, enhancing capacity and profitability[208]. - SkyWest has a firm purchase commitment for 16 new E175 aircraft with anticipated delivery dates extending into 2026[269]. - The company recognized $1.5 million of previously deferred lease revenue during the year ended December 31, 2024[281]. Tax and Impairment - The effective income tax rate increased to 25.3% in 2024 from 14.8% in 2023, influenced by various factors including non-deductible expenses[238]. - The company recorded a non-cash impairment loss of $2.3 million related to 14 CRJ700 aircraft in 2023[285]. - The company reclassified the 14 CRJ700 aircraft as held for use assets in March 2024, resulting in a $4.2 million gain for the year ended December 31, 2024[285]. Fuel and Cost Analysis - The average price per gallon of aircraft fuel for the year ended December 31, 2024, was $3.19, compared to $3.70 in 2023 and $4.14 in 2022[291]. - Salaries, wages, and benefits expense represented 48.3% of total operating expenses for the year ended December 31, 2024[294]. - A hypothetical 25% increase in salaries, wages, and benefits would have raised operating expenses by approximately $366.0 million for the year ended December 31, 2024[294]. - A hypothetical 50 basis point change in market interest rates would not have a material effect on the company's financial results[292].

I don't know if there has been an industry more impacted by the peak of COVID than the airlines. The pandemic essentially halted flying, and all leisure travel for months starting in the winter of 2020. Airline stalwartsI am an investment author with passion for finance and global markets. I enjoy gearing toward economic analysis, specifically on a macro level. Through current and forward looking market trends, fundamental and technical analysis, my goal is to provide investors and readers with the tools an ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: SkyWest (SKYW) - SkyWest currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Performance Metrics - Over the past week, SkyWest shares increased by 5.97%, significantly outperforming the Zacks Transportation - Airline industry, which rose by only 0.13% [5] - In a longer timeframe, SkyWest shares have risen by 6.54% over the past month, compared to the industry's 1.02% [5] - Over the last quarter, SkyWest shares increased by 5.65%, and over the past year, they surged by 99.39%, while the S&P 500 only moved 5.14% and 24.19% respectively [6] Trading Volume - The average 20-day trading volume for SkyWest is 368,876 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for SkyWest have been revised upwards, with no downward revisions, raising the consensus estimate from $8.35 to $9.01 [9] - For the next fiscal year, two estimates have also moved upwards, indicating positive sentiment [9] Conclusion - Given the strong performance metrics and positive earnings outlook, SkyWest is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment opportunity [11]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [2][3] 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 financial health and future outlook by examining projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score evaluates stocks based on price trends and earnings outlook changes, utilizing metrics like one-week price change and monthly earnings estimate changes to identify high-momentum buying opportunities [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who utilize multiple investing styles [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [10][11] Company Spotlight: SkyWest (SKYW) - SkyWest, a regional airline based in St. George, UT, holds a Zacks Rank of 1 (Strong Buy) and a VGM Score of A, making it an attractive option for growth investors [12] - The company is projected to experience a year-over-year earnings growth of 16% for the current fiscal year, with recent upward revisions in earnings estimates [13]

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]