On July 24, 2026, SkyWest Inc SKYW shares rose 7.7% to a current price of $103.66. This increase follows a week where shares gained 6.6%, and the stock has shown a positive trend over the past month with a 7.2% rise. However, over the last year, SKYW has decreased by 6.8%, highlighting some volatility in its price performance within a 52-week range of $77.89 to $123.94.
GF Value™ verdict: Current price is $103.66, which is 4.3% below the GF Value™ of $108.32.GF Score™ of 85/100 indicates a strong overall assessment of the company's fundamentals.No insider transactions have been reported in the last 3 months, signaling stability in insider confidence. Is SKYW Overvalued or Undervalued? The current price of SkyWest Inc SKYW at $103.66 is positioned 4.3% below its GF Value™ of $108.32, suggesting that the stock is undervalued. This margin of safety provides an opportunity for potential investors looking for value in their investments. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label indicates that the stock is fairly valued, which aligns with the notion of undervaluation based on its current market price.
Although the stock is undervalued relative to its GF Value™, it is essential to consider the risks associated with market volatility and the company's financial metrics. Investors should remain cautious, as the stock has shown a decline over the past year, which may indicate underlying challenges that could affect future performance.
How Does SKYW's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)10.3x13.6x Forward P/E9.5x- SkyWest's current P/E (TTM) of 10.3x is significantly below its 5-year median P/E of 13.6x, indicating that the stock is trading at a lower valuation compared to its historical averages. The forward P/E of 9.5x further emphasizes this trend. This analysis supports the GF Value™ verdict of undervaluation as SKYW's current valuation multiples suggest a favorable entry point when compared to its historical performance.
What Does SKYW's GF Score™ Tell Us? MetricRating GF Score™85 Financial Strength5/10 Profitability8/10 Growth8/10 Valuation10/10 Momentum5/10 The GF Score™ of 85/100 highlights a strong overall performance, particularly in the areas of profitability (8/10) and growth (8/10). However, the financial strength rating of 5/10 suggests that there may be concerns regarding the company's balance sheet or cash flow stability. The valuation rank of 10/10 indicates that the stock is currently attractively priced relative to its intrinsic value, affirming the opportunity presented by its current undervaluation.
What Are Insiders Doing with SKYW Stock? In the last three months, there have been no reported insider transactions for SkyWest Inc SKYW . This lack of activity may suggest that insiders are confident in the company's current strategy and performance, or it could reflect a period of stability without significant changes in ownership or expectations among executives. Investors often interpret insider activity as a signal of management's confidence; thus, the absence of transactions may indicate a cautious approach at this time.
What This Means for Investors Based on the analysis of the GF Value™, SkyWest Inc SKYW is currently undervalued, presenting potential opportunities for investors. However, the recent performance trends and the company's financial strength should be closely monitored as part of any investment decision-making process.
For the complete analysis, visit the SkyWest Inc SKYW stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SKYW's GF Score™?
SKYW has a GF Score™ of 85/100, indicating strong fundamentals and potential for higher long-term returns.
Is SKYW overvalued or undervalued?
SKYW is currently undervalued with a GF Value™ of $108.32 compared to its market price of $103.66, representing a 4.3% margin.
What is SKYW's P/E ratio?
SKYW's P/E (TTM) ratio is 10.3x, which is 24% below its 5-year median P/E of 13.6x, indicating that the stock is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about SkyWest (SKYW - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
SkyWest currently has an average brokerage recommendation (ABR) of 1.86, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by seven brokerage firms. An ABR of 1.86 approximates between Strong Buy and Buy.
Of the seven recommendations that derive the current ABR, four are Strong Buy, representing 57.1% of all recommendations.
Brokerage Recommendation Trends for SKYW
Check price target & stock forecast for SkyWest here>>>
The ABR suggests buying SkyWest, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in SKYW?Looking at the earnings estimate revisions for SkyWest, the Zacks Consensus Estimate for the current year has declined 1% over the past month to $10.88.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for SkyWest. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for SkyWest with a grain of salt.
SkyWest, Inc. (SKYW) Q2 2026 Earnings Call July 23, 2026 4:30 PM EDT
Company Participants
Robert Simmons - Chief Financial Officer
Eric Woodward - Chief Accounting Officer
Russell A. Childs - CEO, President & Director
Wade Steel - President & COO- SkyWest Airlines
Conference Call Participants
Savanthi Syth - Raymond James & Associates, Inc., Research Division
Michael Linenberg - Deutsche Bank AG, Research Division
Duane Pfennigwerth - Evercore ISI Institutional Equities, Research Division
Thomas Fitzgerald - TD Cowen, Research Division
Catherine O'Brien - Goldman Sachs Group, Inc., Research Division
Presentation
Operator
Thank you for standing by and welcome to the SkyWest, Inc. Second Quarter 2026 Results Call. [Operator Instructions] I would now like to turn the call over to Rob Simmons, Chief Financial Officer. Sir, please go ahead.
Robert Simmons
Chief Financial Officer
Thanks, everyone, for joining us on the call today. As the operator indicated, this is Rob Simmons, SkyWest's Chief Financial Officer. On the call with me today are Chip Childs, President and Chief Executive Officer; Wade Steel, SkyWest Airlines President and Chief Operating Officer; and Eric Woodward, Chief Accounting Officer. I'd like to start today by asking Eric to read the safe harbor. Then I will turn the time over to Chip for some comments. Following Chip, I will take us through the financial results, then Wade will discuss the fleet and related flying arrangements. Following Wade, we will have the customary Q&A session with our sell-side analysts.
Eric?
Eric Woodward
Chief Accounting Officer
Today's discussion contains forward-looking statements that represent our current beliefs, expectations and assumptions regarding future events and are subject to risks and uncertainties. We assume no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Actual results will likely vary and may vary materially from those anticipated, estimated or projected for a number of reasons. Some of
SkyWest (SKYW - Free Report) came out with quarterly earnings of $2.54 per share, missing the Zacks Consensus Estimate of $2.7 per share. This compares to earnings of $2.91 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -5.93%. A quarter ago, it was expected that this regional airline would post earnings of $2.15 per share when it actually produced earnings of $2.21, delivering a surprise of +2.79%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
SkyWest, which belongs to the Zacks Transportation - Airline industry, posted revenues of $1.1 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.29%. This compares to year-ago revenues of $1.04 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
SkyWest shares have lost about 4.7% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for SkyWest?While SkyWest has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for SkyWest was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.19 on $1.15 billion in revenues for the coming quarter and $10.88 on $4.37 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Bristow Group (VTOL - Free Report) , has yet to report results for the quarter ended June 2026.
This provider of helicopter transportation services is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of -21.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bristow Group's revenues are expected to be $408.72 million, up 8.6% from the year-ago quarter.
ST. GEORGE, Utah--(BUSINESS WIRE)--SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today reported financial and operating results for Q2 2026, including net income of $101 million, or $2.54 per diluted share, compared to net income of $120 million, or $2.91 per diluted share, for Q2 2025. The Q2 2026 financial results were negatively impacted by higher fuel cost per gallon in SkyWest's prorate business compared to Q2 2025. Commenting on the results, Chip Childs, President and Chief Executive Officer o.
Does Delta's Descent To Its 50-Day Line Offer A Buy Opportunity? SkyWest NASDAQ: SKYW reported second-quarter 2026 net income of $101 million, or $2.54 per diluted share, as stronger flying demand helped offset higher fuel costs in its prorate business, executives said on the company’s earnings call.
President and Chief Executive Officer Chip Childs said the quarter reflected increased block hours and “very strong demand both in our contract and pro-rate flying despite a higher fuel cost.” He said demand allowed the company to offset about 60% of the fuel impact in the fare portion of its prorate business.
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During the quarter, SkyWest operated nearly 228,000 flights and delivered a 99.9% adjusted completion rate, Childs said. Executives also emphasized the company’s fleet growth plans, including a new agreement with American Airlines for 11 Embraer E175 aircraft, and a $250 million increase to SkyWest’s existing stock repurchase authorization.
Revenue rises as block hours increase Chief Financial Officer Robert Simmons said SkyWest generated second-quarter GAAP pre-tax income of $139 million, up 29% from the first quarter. Total revenue was $1.1 billion, up 9% from the first quarter of 2026 and up 7% from the second quarter of 2025.
Second-quarter revenue included $864 million of contract revenue, $201 million of prorate and charter revenue, and $38 million of leasing and other revenue. Simmons said the results included $27 million of previously deferred revenue recognized during the quarter. SkyWest ended the quarter with $214 million of cumulative deferred revenue to be recognized in future periods.
Fuel costs were a major headwind for the prorate business. Simmons said prorate fuel expense was $61 million in the second quarter, compared with $28 million in the year-earlier period. The $33 million increase reflected both higher fuel prices and increased prorate production. SkyWest’s prorate fuel price was $4.45 per gallon in the second quarter, up from $2.88 in the second quarter of 2025 and $3.40 in the first quarter of 2026.
For the full year, Simmons said SkyWest expects block hour production to rise approximately 5% from 2025. The company anticipates GAAP earnings per share “in the $11 area” for 2026, subject to continued prorate fuel volatility. That outlook assumes an average jet fuel price of $3.65 per gallon for the second half of 2026 and 28 million gallons needed for the prorate business during that period.
American deal adds to E175 growth plan SkyWest announced an agreement with American Airlines for 11 new E175s, with deliveries scheduled in 2026 and 2027. Wade Steel, president and chief operating officer of SkyWest Airlines, said the aircraft are expected to replace 11 CRJ700s currently flown under contract with American.
Steel said SkyWest expects to place those CRJ700s with one of its major partners through prorate agreements, capacity purchase agreements or traditional leases. He added that some could potentially be converted to CRJ550s for partners.
SkyWest is scheduled to purchase the 11 E175s from Embraer. Four of the American aircraft are expected near the end of the fourth quarter of 2026, while the remaining seven are heavily weighted toward the first half of 2027, Steel said during the question-and-answer session.
The company currently has 67 future E175s on firm order with Embraer, including 16 for Delta, 11 for American and seven for United. Steel said 34 of those aircraft are allocated to major partners, while 33 are not yet assigned. He said the order locks in delivery slots from 2027 through 2032, but includes flexibility to defer or terminate aircraft if SkyWest does not arrange for a partner to take them.
With the American agreement, SkyWest’s E175 fleet is scheduled to reach 300 aircraft by the end of 2027, continuing its position as the largest E175 operator in the world, Steel said.
CRJ conversions and prorate flying remain priorities Executives highlighted ongoing efforts to transition toward an all dual-class fleet. Steel said SkyWest is preparing to deploy the CRJ450 for United later this year and expects to convert four to six aircraft per month beginning this fall. The company expects to have 40 CRJ450s under contract with United and sees the opportunity potentially reaching 100 aircraft.
SkyWest also continues to convert CRJ700s into CRJ550s. Steel said 36 CRJ550s were in service as of June 30, with the remaining 14 under a 50-aircraft United agreement expected to enter service this year.
In prorate flying, Steel said demand remains “extremely strong,” supported by community engagement. SkyWest added 10 aircraft to prorate agreements during the quarter and is continuing to evaluate opportunities to restore service to underserved communities. The company is also operating eight aircraft under a reinitiated prorate agreement with American, with up to nine expected by year-end.
Childs said the company continues to see strong demand even as seasonal trends point to some fall moderation. He also said the shift toward an all dual-class fleet should support the company’s long-term prorate strategy.
Balance sheet, buybacks and capital spending SkyWest ended the quarter with $601 million in cash, down slightly from $627 million in the prior quarter. Simmons said the ending cash balance reflected $122 million of debt repayments, $24 million of new debt financing for fleet deliveries, $139 million in capital expenditures, and $75 million of share repurchases.
The company repurchased 833,000 shares during the second quarter and had $63 million remaining under its existing authorization as of June 30. Simmons said the board approved an additional $250 million for share repurchases.
Simmons said SkyWest generated more than $460 million of EBITDA in the first half of 2026, despite the fuel cost headwind. Since the end of 2025, the company reduced total debt by approximately $100 million, invested more than $240 million in fleet-related capital expenditures and repurchased $150 million of shares.
For 2026, SkyWest expects approximately $700 million of capital expenditures. Simmons said about half of that amount relates to new E175 deliveries. The company expects to finance 11 new E175s this year, but still expects debt to trend lower over the next several years.
Executives said the company plans to continue allocating free cash flow across fleet investment, debt reduction and opportunistic share repurchases. Simmons said SkyWest expects to have more than 100 unencumbered E175s by the end of 2029.
Analysts focus on fuel, fleet placement and 2027 growth During the question-and-answer portion of the call, analysts asked about the impact of fuel volatility on the prorate business. Childs said the company is in a “more stable position” than earlier in the year and continues to have constructive conversations with partners.
Analysts also pressed for details on the placement of aircraft returning from American and from third-party leases. Steel said SkyWest is in discussions with major partners about placing the aircraft in contract, prorate or leasing arrangements. He described contract economics as consistent with existing agreements, while leasing can have higher margin attributes and prorate margins remain more variable.
Asked about 2027 block hour growth, Steel said the company is still finalizing its plans and expects to provide more detail next quarter.
About SkyWest (NASDAQ:SKYW)SkyWest, Inc NASDAQ: SKYW is a regional airline holding company that provides air transportation services through its primary subsidiary, SkyWest Airlines. The company operates flights under capacity purchase agreements with major carriers such as United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. By specializing in regional connectivity, SkyWest links smaller communities to larger hubs using a fleet of regional jets and turboprop aircraft.
Headquartered in St. George, Utah, SkyWest oversees all aspects of its airline operations, including flight scheduling, crew training and aircraft maintenance.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Allspring Global Investments Holdings LLC raised its position in SkyWest, Inc. (NASDAQ:SKYW – Free Report) by 21.6% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 215,017 shares of the transportation company’s stock after acquiring an additional 38,135 shares during the quarter. Allspring Global Investments Holdings LLC owned approximately 0.54% of SkyWest worth $20,147,000 as of its most recent SEC filing.
Other institutional investors and hedge funds also recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in SkyWest by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,590 shares of the transportation company’s stock worth $2,061,000 after buying an additional 1,034 shares during the period. United Services Automobile Association purchased a new position in SkyWest in the 1st quarter valued at approximately $227,000. M&T Bank Corp grew its stake in shares of SkyWest by 7.6% in the second quarter. M&T Bank Corp now owns 2,825 shares of the transportation company’s stock worth $290,000 after acquiring an additional 199 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of SkyWest by 118.5% in the second quarter. EverSource Wealth Advisors LLC now owns 625 shares of the transportation company’s stock worth $64,000 after acquiring an additional 339 shares in the last quarter. Finally, First Trust Advisors LP increased its position in shares of SkyWest by 8.8% during the second quarter. First Trust Advisors LP now owns 85,577 shares of the transportation company’s stock worth $8,812,000 after acquiring an additional 6,938 shares during the period. 81.30% of the stock is currently owned by hedge funds and other institutional investors.
SkyWest Trading Up 2.2% Shares of SkyWest stock opened at $99.34 on Tuesday. The company has a current ratio of 0.62, a quick ratio of 0.51 and a debt-to-equity ratio of 0.66. The company has a fifty day simple moving average of $90.91 and a 200-day simple moving average of $94.49. The stock has a market cap of $3.94 billion, a price-to-earnings ratio of 9.52, a PEG ratio of 1.41 and a beta of 1.45. SkyWest, Inc. has a 12-month low of $77.89 and a 12-month high of $123.94.
SkyWest (NASDAQ:SKYW – Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The transportation company reported $2.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.15 by $0.35. The company had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $993.06 million. SkyWest had a net margin of 10.42% and a return on equity of 15.55%. SkyWest’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.42 earnings per share. On average, equities analysts forecast that SkyWest, Inc. will post 10.58 EPS for the current fiscal year.
Wall Street Analysts Forecast Growth Several analysts have recently issued reports on SKYW shares. TD Cowen increased their price objective on SkyWest from $98.00 to $115.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Citigroup boosted their target price on SkyWest from $95.00 to $105.00 and gave the stock a “neutral” rating in a research note on Friday, June 26th. Weiss Ratings upgraded SkyWest from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday. Finally, The Goldman Sachs Group lowered SkyWest from a “buy” rating to a “neutral” rating and reduced their price target for the company from $126.00 to $115.00 in a research report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $121.17.
Get Our Latest Analysis on SKYW
SkyWest Profile (Free Report)
SkyWest, Inc (NASDAQ: SKYW) is a regional airline holding company that provides air transportation services through its primary subsidiary, SkyWest Airlines. The company operates flights under capacity purchase agreements with major carriers such as United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. By specializing in regional connectivity, SkyWest links smaller communities to larger hubs using a fleet of regional jets and turboprop aircraft.
Headquartered in St. George, Utah, SkyWest oversees all aspects of its airline operations, including flight scheduling, crew training and aircraft maintenance.
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SkyWest (SKYW - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis regional airline is expected to post quarterly earnings of $2.70 per share in its upcoming report, which represents a year-over-year change of -7.2%.
Revenues are expected to be $1.11 billion, up 6.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.52% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for SkyWest?For SkyWest, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -5.56%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that SkyWest will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that SkyWest would post earnings of $2.15 per share when it actually produced earnings of $2.21, delivering a surprise of +2.79%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
SkyWest doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
SkyWest (SKYW - Free Report) closed at $97.78 in the latest trading session, marking a -1.95% move from the prior day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.55%.
The stock of regional airline has risen by 8.69% in the past month, leading the Transportation sector's gain of 3.77% and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of SkyWest in its forthcoming earnings report. The company is scheduled to release its earnings on July 23, 2026. The company is forecasted to report an EPS of $2.7, showcasing a 7.22% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.11 billion, indicating a 6.83% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.88 per share and a revenue of $4.37 billion, indicating changes of +5.12% and +7.71%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for SkyWest. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.03% lower within the past month. SkyWest is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that SkyWest has a Forward P/E ratio of 9.17 right now. This expresses a discount compared to the average Forward P/E of 11.27 of its industry.
Investors should also note that SKYW has a PEG ratio of 1.41 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.83.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
ST. GEORGE, Utah--(BUSINESS WIRE)--SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today announced that Wade Steel has been named president and chief operating officer of SkyWest Airlines, Inc., a wholly-owned subsidiary of SkyWest, Inc. As president and chief operating officer of SkyWest Airlines, the company's largest operating entity, Steel will be responsible for the airline's operational and fiscal success. He will oversee SkyWest Airlines leadership and continue reporting to Chip Childs, SkyWest.
SkyWest (SKYW - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this regional airline have returned +14.7%, compared to the Zacks S&P 500 composite's -0.9% change. During this period, the Zacks Transportation - Airline industry, which SkyWest falls in, has gained 19.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, SkyWest is expected to post earnings of $2.85 per share, indicating a change of -2.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.95 points to a change of +5.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $11.78 indicates a change of +7.6% from what SkyWest is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, SkyWest is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of SkyWest, the consensus sales estimate of $1.11 billion for the current quarter points to a year-over-year change of +7.6%. The $4.36 billion and $4.47 billion estimates for the current and next fiscal years indicate changes of +7.5% and +2.4%, respectively.
Last Reported Results and Surprise HistorySkyWest reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $2.21 for the same period compares with $2.42 a year ago.
Compared to the Zacks Consensus Estimate of $978.13 million, the reported revenues represent a surprise of +3.58%. The EPS surprise was +2.79%.
Over the last four quarters, SkyWest surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
SkyWest is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SkyWest. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
ST. GEORGE, Utah--(BUSINESS WIRE)--SkyWest, Inc. (NASDAQ: SKYW) will host a live conference call and webcast after the market closes on Thursday, July 23, 2026 to discuss second quarter 2026 results. The format will include an overview of the quarterly results followed by a Q&A session.
Thursday, July 23, 2026
2:30 p.m. Mountain Time
Interested parties can access the webcast at:
https://events.q4inc.com/attendee/759519720
The call-in number for US callers is 1-888-330-2455
The call-in number for international callers is 1-240-789-2717
The conference ID/Event Plus passcode is: 8322450
Please connect ten minutes before the scheduled hour to ensure a prompt starting time. If you have any questions, please contact Investor Relations at 435-634-3200.
In addition, a digital rebroadcast of the conference call will be available after 5:30 p.m. MT on July 24, 2026 through August 6, 2026 at 9:59 p.m. MT. US callers can access the rebroadcast by dialing 1-800-770-2030; international callers can access the rebroadcast by dialing 1-609-800-9909. The conference ID is 8322450#. Your participation is welcomed and appreciated.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying SKYW stock? Here’s what analysts think:
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about SkyWest (SKYW - Free Report) .
SkyWest currently has an average brokerage recommendation (ABR) of 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by seven brokerage firms. An ABR of 1.57 approximates between Strong Buy and Buy.
Of the seven recommendations that derive the current ABR, five are Strong Buy, representing 71.4% of all recommendations.
Brokerage Recommendation Trends for SKYW
Check price target & stock forecast for SkyWest here>>>
The ABR suggests buying SkyWest, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in SKYW?Looking at the earnings estimate revisions for SkyWest, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $10.95.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for SkyWest. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for SkyWest.
SkyWest (SKYW - Free Report) closed at $99.31 in the latest trading session, marking a +1.04% move from the prior day. This change outpaced the S&P 500's 0.05% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the regional airline had gained 14% over the past month, outpacing the Transportation sector's gain of 5.43% and the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of SkyWest in its upcoming release. The company is forecasted to report an EPS of $2.85, showcasing a 2.06% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.11 billion, up 7.62% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.95 per share and a revenue of $4.36 billion, indicating changes of +5.8% and +7.49%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for SkyWest. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, SkyWest holds a Zacks Rank of #4 (Sell).
Investors should also note SkyWest's current valuation metrics, including its Forward P/E ratio of 8.98. For comparison, its industry has an average Forward P/E of 11.79, which means SkyWest is trading at a discount to the group.
Investors should also note that SKYW has a PEG ratio of 1.38 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 1.13.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 210, placing it within the bottom 14% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SKYW in the coming trading sessions, be sure to utilize Zacks.com.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SkyWest (SKYW - Free Report) closed the most recent trading day at $98.29, moving +1.64% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.01% for the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.46%.
The stock of regional airline has risen by 11.61% in the past month, leading the Transportation sector's gain of 3.19% and the S&P 500's loss of 1.4%.
The investment community will be closely monitoring the performance of SkyWest in its forthcoming earnings report. The company is expected to report EPS of $2.85, down 2.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.11 billion, up 7.62% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.95 per share and a revenue of $4.36 billion, demonstrating changes of +5.8% and +7.49%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for SkyWest. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SkyWest is currently a Zacks Rank #4 (Sell).
Investors should also note SkyWest's current valuation metrics, including its Forward P/E ratio of 8.83. This indicates a discount in contrast to its industry's Forward P/E of 11.85.
Also, we should mention that SKYW has a PEG ratio of 1.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 1.12 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
SkyWest (SKYW - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this regional airline have returned +9.8% over the past month versus the Zacks S&P 500 composite's +0.1% change. The Zacks Transportation - Airline industry, to which SkyWest belongs, has gained 13.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, SkyWest is expected to post earnings of $2.85 per share, indicating a change of -2.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.95 points to a change of +5.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $11.78 indicates a change of +7.6% from what SkyWest is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, SkyWest is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of SkyWest, the consensus sales estimate of $1.11 billion for the current quarter points to a year-over-year change of +7.6%. The $4.36 billion and $4.47 billion estimates for the current and next fiscal years indicate changes of +7.5% and +2.4%, respectively.
Last Reported Results and Surprise HistorySkyWest reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $2.21 for the same period compares with $2.42 a year ago.
Compared to the Zacks Consensus Estimate of $978.13 million, the reported revenues represent a surprise of +3.58%. The EPS surprise was +2.79%.
Over the last four quarters, SkyWest surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
SkyWest is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SkyWest. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Key Takeaways SkyWest expands fleet via agreements with UAL, DAL, ALK and Embraer for new E175 deliveries.SKYW ended Q1 2025 with $627.25M cash, surpassing its current debt of $598.43M for strong flexibility.Rise in operating expenses, macro-economic uncertainty and pilot shortages continue to bother SKYW. SkyWest, Inc. (SKYW - Free Report) ) looks cheap from a valuation standpoint. Considering the trailing 12-month price-to-book (P/B) ratio, SkyWest is trading at a discount compared to the industry.
The stock has a trailing 12-month P/B-TTM of 1.34X compared with 3.12X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. SKYW has a Value Score of A.
SKYW P/B Ratio (Trailing 12 months) Vs. Industry Image Source: Zacks Investment Research
Now, the question is whether it is worth buying, holding, or selling the SkyWest stock at current prices. Let us delve deeper to find out.
Tailwinds Working in Favor of SkyWest StockSkyWest's top line benefits from flying contract rate increases. As of March 31, 2026, SkyWest had cumulative deferred revenues of $240.69 million under its flying contracts. Revenues from flying agreements (contributing 96.5% to the top line) grew 6.7% year over year during first-quarter 2026. Departures increased 1.1% on a year-over-year basis in the first quarter.
SkyWest's fleet-modernization efforts to cater to the improvement in travel demand are commendable. In a bid to modernize its fleet, SKYW had fleet-related agreements with airline heavyweights like United Airlines (UAL - Free Report) , Delta Air Lines (DAL - Free Report) and Alaska Airlines (ALK - Free Report) .
Concurrent with its first-quarter 2026 results, SkyWest intends to convert its CRJ200 aircraft, operating for United Airlines, into 41-seat, dual-class CRJ450s, with the first aircraft entering service in fall 2026. SkyWest had one E175 aircraft delivery for Alaska Airlinesin the first quarter of 2026. The company’s aircraft lease agreements for the E175 fleet, which supports Alaska’s capacity purchase agreement, are set to expire between 2030 and 2034.
Further, UAL is scheduled to deliver eight E175 planes in 2026. Alaska Airlines is expected to deliver one E175 in 2026. DAL is likely to deliver 10 E175 planes in 2027 and six in 2028. By 2028-end, SkyWest anticipates having nearly 300 E175 aircraft in its fleet. As previously announced, SkyWest entered into a purchase agreement with Embraer, which secures delivery positions for 44 additional E175s from 2028 through 2032 for potential future flying opportunities. SkyWest also secured purchase rights on 50 additional E175s from Embraer.
SkyWest’s solid balance sheet increases financial flexibility. The company ended first-quarter 2026 with cash and marketable securities of $627.25 million, higher than the current debt level of $598.43 million. This implies that the company has sufficient cash to meet its current debt obligations. Meanwhile, long-term debt level has decreased to $1.79 billion at the end of first-quarter 2026 from $2.07 billion at the end of the first quarter of 2025.
A strong balance sheet enables the company to reward shareholders with share repurchases. As a reflection of its shareholder-friendly stance, in May 2025, SKYW's existing repurchase plan was increased by $250 million. SkyWest repurchased 783,000 shares for $75 million during the first quarter of 2026. As of March 31, 2026, SkyWest had $138 million available under its current share repurchase program. Buybacks not only reduce the total outstanding share count, thereby increasing earnings per share, but also signal management's belief in the intrinsic value of the stock.
Long-Term Debt to Capitalization Image Source: Zacks Investment Research
Headwinds Weighing on SkyWest StockSkyWest's bottom line continues to be weighed down by a rise in operating expenses. This is due to an increase in employee compensation, which includes higher labor pay scales, increased maintenance and costs related to aircraft maintenance, materials and repair, higher production and higher pilot training costs. SkyWest witnessed a consistent increase in operating expenses from $2.82 billion in 2022 to $2.83 billion in 2023 to $3.03 billion in 2024 to $3.44 billion in 2025. In first-quarter 2026, operating expenses were $889 million, up 10% year over year, owing to an expected increase in incremental direct operating costs associated with higher production and higher pilot training costs.
Macro-economic uncertainty and pilot shortages continue to plague regional carriers like SkyWest. The competition from larger airlines exacerbates the shortage of qualified pilots for regional carriers. This shortage limits the number of flights regional airlines can operate and can lead to increased operating costs due to the need to offer competitive salaries and benefits.
Stock prices of regional airline companies are notoriously volatile. As such, shares of SKYW may not be suitable for investors who are not comfortable with the often-substantial day-to-day volatility.
What Do Earnings Estimates Say for SkyWest?The negative sentiment surrounding SkyWest stock is evident from the fact that the Zacks Consensus Estimate for the second quarter of 2026 and the third quarter of 2026 earnings has been revised downward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected downward in the past 60 days.
Image Source: Zacks Investment Research
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Not an Opportune Time to Buy SkyWest StockApart from being attractively valued at present, SkyWest's fleet-modernization efforts remain commendable. In a bid to modernize its fleet, SKYW has fleet-related agreements with airline heavyweights like United Airlines, Delta Air Lines and Alaska Airlines. By 2028-end, SKYW is scheduled to have nearly 300 E175 aircraft. A solid balance sheet allows SKYW to consistently reward shareholders with share repurchases. Such moves should boost investor confidence and positively impact the bottom line.
Despite these positives, we advise investors not to buy SKYW stock now, as it continues to be hurt by a consistent rise in operating expenses. The macroeconomic uncertainty and pilot shortages are also hurting SKYW's prospects. Share price volatility continues to be a cause for worry. Considering all these factors, we advise investors to wait for a better entry point and not buy SKYW now. For those who already own the stock, it will be prudent to stay invested. The company’s current Zacks Rank #3 (Hold) justifies our analysis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SkyWest (SKYW - Free Report) closed the most recent trading day at $92.66, moving +1.02% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.91%.
Shares of the regional airline witnessed a gain of 10.12% over the previous month, beating the performance of the Transportation sector with its gain of 3.66%, and the S&P 500's gain of 0.29%.
The upcoming earnings release of SkyWest will be of great interest to investors. The company is expected to report EPS of $2.85, down 2.06% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.11 billion, showing a 7.62% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.95 per share and a revenue of $4.36 billion, indicating changes of +5.8% and +7.49%, respectively, from the former year.
Any recent changes to analyst estimates for SkyWest should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, SkyWest boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that SkyWest has a Forward P/E ratio of 8.38 right now. This denotes a discount relative to the industry average Forward P/E of 12.19.
It's also important to note that SKYW currently trades at a PEG ratio of 1.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Transportation - Airline industry stood at 0.96 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 201, positioning it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about SkyWest (SKYW - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
SkyWest currently has an average brokerage recommendation (ABR) of 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by seven brokerage firms. An ABR of 1.57 approximates between Strong Buy and Buy.
Of the seven recommendations that derive the current ABR, five are Strong Buy, representing 71.4% of all recommendations.
Brokerage Recommendation Trends for SKYW
Check price target & stock forecast for SkyWest here>>>
The ABR suggests buying SkyWest, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is SKYW Worth Investing In?In terms of earnings estimate revisions for SkyWest, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $10.95.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for SkyWest. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for SkyWest.
SkyWest (SKYW) came out with quarterly earnings of $2.21 per share, beating the Zacks Consensus Estimate of $2.15 per share. This compares to earnings of $2.42 per share a year ago.
Spirit Airlines is on the brink of collapse and is warning of possible liquidation. If Spirit disappears, travelers are likely to feel the impact quickly.
SkyWest (SKYW) offers a defensible, niche model with multi-year earnings visibility via capacity purchase agreements with major carriers, insulating it from demand risk. Q1'26 results beat expectations, with $1.01B revenue (+7% YoY) and $2.50 EPS, but profitability was pressured by higher labor and fuel costs. SKYW trades at 4.9x EV/EBITDA and 7.4x P/E, below peers, supported by a net cash position and aggressive buybacks at a 14% earnings yield.
The collapse of Spirit Airlines is cascading through airports across the US, leaving passengers stranded mid-journey and sending rival carriers into rapid-response mode to contain the damage. Airlines for America President & CEO Chris Sununu joins David Gura and Christina Ruffini on Bloomberg This Weekend to discuss.
Zacks.com users have recently been watching SkyWest (SKYW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Zacks.com users have recently been watching SkyWest (SKYW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
