SkyWest (SKYW) Q2 Loss Wider Than Expected, Load Factor Tanks

SkyWest‘s SKYW second-quarter 2020 loss of 51 cent per share was wider than the Zacks Consensus Estimate of a loss of 2 cents.  Results were hurt by coronavirus-induced low air-travel demand. The company reported earnings of $1.71 per share in the year-ago quarter when air-travel demand was strong.  

Moreover, quarterly revenues of $350 million plunged 53% year over year and missed the Zacks Consensus Estimate of $352.4 million. The COVID-19 pandemic caused a significant reduction in the number of scheduled flights, thereby hurting the top line.

Revenues from flying agreements (contributing 96.1% to the top line) decreased 53.6% from the year-ago quarter’s figure. Total expenses fell 41% to $354.4 million due to lower number of operating flights. The carrier reported a 66% decline in block hours (a measure of aircraft utilization) during the reported quarter. Passenger load factor (percentage of seats filled by passengers) deteriorated 4950 basis points to 34.4% in the reported quarter due to shrink in air travel demand thanks to the pandemic.

SkyWest, Inc. Price, Consensus and EPS Surprise

SkyWest, Inc. Price, Consensus and EPS Surprise

SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote

Liquidity

The company, carrying a Zacks Rank #5 (Strong Sell), exited the second quarter with cash and marketable securities of $762 million, up from $520 million at 2019 end.  Long-term debt (net of current maturities) inched up 1.3% year over year to $2.6 billion.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sectorial Snapshot

Let’s take a look into some other Zacks Transportation sector companies’ second-quarter results.

Canadian National’s CNI second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) were in line with the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year. Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and fell 21.8% year over year.

J.B. Hunt Transport JBHT, reported second-quarter 2020 earnings of $1.14 per share that surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million beat the Zacks Consensus Estimate of $2,060.9 million.

Kansas City Southern’s KSU second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. Total revenues of $547.9 million lagged the consensus mark of $550.2 million.

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Canadian National Railway Company (CNI): Free Stock Analysis Report
 
Kansas City Southern (KSU): Free Stock Analysis Report
 
J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report
 
SkyWest, Inc. (SKYW): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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