Can SKYW's Q1 2025 EPS forecast sustain its growth momentum?
4/5/2025 07:26pm
**SkyWest's (SKYW) Q1 2025 EPS forecast indicates a strong potential for sustaining growth momentum**. Here's a detailed analysis to support this conclusion:
1. **Projected EPS Growth**: The EPS for Q1 2025 is forecasted at $2.01, which represents a significant year-over-year growth of 38.62% compared to the same quarter last year. This substantial increase suggests a strong underlying business performance.
|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|SKYW|SKYW.O|Skywest|2024 Q1|422.22222222222223|1.45|185|
|SKYW|SKYW.O|Skywest|2024 Q2|420.0000000000001|1.82|185|
|SKYW|SKYW.O|Skywest|2024 Q3|292.72727272727275|2.16|185|
2. **Revenue Growth Corroboration**: The projected revenue for the quarter is $926.38 million, indicating a 15.28% growth from the previous year's corresponding quarter. This revenue growth complements the EPS growth, painting a picture of a company that is not only increasing profitability but also expanding its top line.
3. **Analyst Confidence**: The Zacks Rank, which SkyWest has been assigned as a #1 (Strong Buy), reflects analyst confidence in the company's business outlook. This rating is based on historical performance data and is considered a reliable indicator of future stock performance.
4. **Market Position and Performance**: Despite short-term fluctuations, SkyWest has outperformed the market in certain periods, such as on March 13, 2025, when its stock rose by 1.1% while the S&P 500 experienced a loss. This resilience in the face of market volatility suggests a strong market position that could support continued growth.
5. **Long-term Growth Trends**: SkyWest's five-year total shareholder returns have been impressive, with a 295% increase in share price over the last half decade, indicating that the company has been generating value for its shareholders. This long-term trend is a positive indicator for future growth expectations.
6. **Earnings Performance**: SkyWest's recent earnings report for Q4 2024 showed a 28.999999999999996% beat on estimated earnings, reporting an EPS of $2.34 versus an estimate of $1.81. This achievement further bolsters confidence in the company's ability to exceed expectations and sustain growth.
In conclusion, the combination of SkyWest's projected EPS growth, revenue growth, analyst confidence, market performance, long-term growth trends, and recent earnings performance strongly suggests that the company's Q1 2025 EPS forecast is well-supported and that its growth momentum is likely to continue.