Is SKYH's Q3 2024 EPS growth sustainable?

**Sky Harbour Group's Q3 2024 EPS growth is not currently sustainable** based on the following points:

1. **Significant Decline in EPS**: The most notable point is the substantial decrease in EPS from the previous quarter. Sky Harbour Group reported an EPS of $0.06 for Q2 2024, which was a positive surprise, as it beat the analyst estimate of -$0.04. However, in Q3 2024, the EPS plummeted to -$0.74, which is a stark contrast to the previous quarter's performance. This drastic change suggests that the company may be facing unforeseen challenges or that its business model is not yet stable enough to sustain consistent profitability.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|SKYH|SKYH.N|Sky Harbour|2024 Q1|-90.24390243902441|-0.78|169|
|SKYH|SKYH.N|Sky Harbour|2024 Q2|300|0.06|169|
|SKYH|SKYH.N|Sky Harbour|2024 Q3|-7300|-0.74|169|

2. **Negative Net Income**: The company's net income for Q3 2024 was -$20.7 million. A negative net income indicates that the company is not only unprofitable but is also losing money, which is a red flag for sustainability.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|SKYH|SKYH.N|Sky Harbour|2023 Q4|-877.3033707865169|-1.3047E7|169|
|SKYH|SKYH.N|Sky Harbour|2024 Q1|-141.9700947380436|-2.1199E7|169|
|SKYH|SKYH.N|Sky Harbour|2024 Q2|354.7735618115055|4163000|169|
|SKYH|SKYH.N|Sky Harbour|2024 Q3|-935.4677338669335|-2.0699E7|169|

3. **Analyst Estimates and Forecasts**: Analysts have forecasted an EPS of ($0.07) for Q3 2024, which is significantly lower than the actual EPS of -$0.74. This discrepancy suggests that analysts may have been anticipating a decline in performance, and the actual figures could be indicative of a deeper underlying issue.
4. **Construction and Operational Challenges**: The company has faced challenges with hangar design flaws and cost overruns, which have impacted profitability. These construction and operational issues could be contributing to the current unsustainable EPS growth.
5. **Dilution Risk**: The company has a history of significant stock dilution, with major shareholders selling substantial portions of their stakes. This could be a sign of uncertainty in the company's future prospects, which may affect investor confidence and, consequently, the sustainability of EPS growth.

In conclusion, Sky Harbour Group's Q3 2024 EPS growth is not sustainable due to the significant decline in EPS, negative net income, analyst estimates, operational challenges, and dilution risk. These factors combined paint a picture of a company that is currently facing significant headwinds, making it difficult to envision a short-term recovery or sustainable growth in EPS.