SkyWest's Q3 Earnings Coming Up: What's in Store for the Stock?

Core Insights - SkyWest, Inc. (SKYW) is set to report its third-quarter 2025 results on October 30, with a history of positive earnings surprises, averaging a beat of 21.92% over the last four quarters [1][2]. Financial Performance - The Zacks Consensus Estimate for SKYW's Q3 2025 revenues is $1.01 billion, reflecting an 11.13% year-over-year increase [3]. - The earnings per share (EPS) estimate for Q3 2025 has been revised upward by 4.07% to $2.56, indicating an 18.52% growth compared to the previous year [3][5]. Influencing Factors - Increased air travel demand and fleet modernization initiatives are expected to positively impact SKYW's performance [3][6]. - Over 90% of revenue growth is attributed to flying agreements, which are crucial for the company's top-line performance [3]. Challenges - Rising labor costs and geopolitical uncertainties may pressure Q3 margins, with a noted 0.00% Earnings Surprise Prediction (ESP) and a Zacks Rank of 4 indicating potential challenges [5][8]. - Persistent inflation, tariff-related pressures, and pilot shortages are expected to negatively affect operations [7]. Recent Performance - In Q2 2025, SkyWest reported an EPS of $2.91, surpassing the Zacks Consensus Estimate by 24.4% and showing a year-over-year improvement of 59.9% [9]. - Revenues for Q2 2025 were $1.04 billion, exceeding estimates by 5.3% and increasing 19.4% year over year [9].