SkyWest Inc. ( NASDAQ: SKYW ) shares plunged nearly 25% at their daily low after Q4 earnings missed estimates by a wide margin.
The Utah-based airline posted a $0.93 per share loss for the quarter, well below the $0.10 EPS report anticipated by the Street. Meanwhile, a 12.3% decline in revenue to $681.25M came up $72.71M of expectations.
“Reflected in those results were $69M of deferred revenue related to successfully amending the majority of our flying contracts, a $36M non cash impairment on 10 CRJ700 aircraft and an $11M accelerated lease expense. We expect moving forward, we will be discussing deferred revenue regularly until the fleet utilization normalizes,” CEO Chip Childs said. “Despite the noise in the fourth quarter, I want to point out that over the past year we have set ourselves up to be a fundamentally different and better company.”
Despite the explanation, the stock hit an intraday low of $16.59, equating to about a 24% drop, the largest one-day decline since March 2020. Shares rebounded modestly into afternoon trading, trending toward about a 16% slide in afternoon trading.
Read the earnings call transcript .
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SkyWest stock dives over 20% on surprise quarterly loss, revenue decline