The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SkyWest met expectations on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
SkyWest tallied revenue of $899.9 million. The eight analysts polled by S&P Capital IQ anticipated sales of $905.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $796.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.33. The four earnings estimates compiled by S&P Capital IQ predicted -$0.35 per share on the same basis. GAAP EPS were -$0.35 for Q4 compared to $0.66 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.4%, 900 basis points worse than the prior-year quarter. Operating margin was -0.4%, 800 basis points worse than the prior-year quarter. Net margin was -2.0%, 670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $918.5 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $3.76 billion. The average EPS estimate is $0.57.
Over the decades, small-cap stocks like SkyWest have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add SkyWest to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.