SkyWest falls 14.7% after third-quarter results because of mixed profit and costs

What happened

SkyWest (SKYW) fell 14.7% on October 30, 2026, because its third-quarter results showed mixed profit metrics and higher fuel costs dented margins. The company reported third-quarter 2026 net income of $120 million, or $3.08 per diluted share, up from $116 million, or $2.81 per diluted share, in Q3 2025. Management said higher block-hour demand from airline partners increased revenue while elevated fuel cost per gallon in its prorate business had a negative impact on results, according to Business Wire and Benzinga. The reported EPS of $3.08 missed the Zacks Consensus Estimate of $3.13, even as the company also noted an EPS figure of $3.08 versus $3.07 expected, 0.3% above estimates.

How big was the move

The stock closed at $82.33 after the session, a decline that was 5.5 times a typical daily move for this stock. Trading volume ran 3.1 times its 20-day average and the stock opened 9.1% below the previous close. SkyWest fell 11.5% over the last five sessions. The S&P 500 fell 1.8% on the day and the Industrials sector median fell 1.9%, making SkyWest 12.8 percentage points worse than the sector median. The company has a beta of 1.12, meaning the stock tends to move more than the market.

The technical picture

The stock is 12.4% below its 20-day moving average, 14.6% below its 50-day moving average and 14.2% below its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, even as the Relative Strength Index (14 days) sits at 29, below the commonly cited oversold threshold of 30. SkyWest is 30.1% below its 52-week high and has fallen 15.7% over one month and 26.1% over three months. Volatility is 42% annualized over 60 days, higher than 60% of its own readings over five years.

Technically, the mix of an earnings-driven selloff and the stock's oversold reading suggests shorter-term traders may have accelerated selling. The longer-term trend signal — the 50-day above the 200-day — still points to an established uptrend, which could limit a prolonged decline if fundamentals stabilize.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $4.26 billion, which grew 7.0% from a year earlier. Diluted earnings per share for that period were $10.33, with EPS growth from a year earlier that fell 1.4%. Gross margin was 70.6% (a year earlier: 23.9%), while operating margin was 13.9% (a year earlier: 15.8%). Free-cash-flow margin was 3.7% and return on invested capital was 7.3%. The balance sheet shows net debt of 2.5 times EBITDA and share count over one year decreased by 6.3%.

Valuation sits at 8.0 times trailing earnings and 7.8 times expected earnings, with a free-cash-flow yield of 4.3%. The price to trailing earnings is lower than 95% of its own readings over the past five years (five-year median: 13.9 times earnings). Those metrics frame SkyWest as a value-heavy name: the stock trades well below its historical multiple even as margins show pressure from fuel costs and EPS growth lagged year-over-year. PromtFinance scores rank Value 97 (Exceptional), Growth 25 (Very weak), Quality 77 (Positive), Momentum 40 (Weak), Revisions 40 (Weak) and Stability 51 (Neutral), underscoring the tension between cheap valuation and weak growth momentum.

Earnings and analyst expectations

SkyWest’s last report on October 29, 2026, showed earnings per share of $3.08 against $3.07 expected, 0.3% above estimates. Management said higher block-hour demand was offset by elevated fuel cost per gallon in its prorate business, as reported by Business Wire and Benzinga. The firm has recorded one consecutive quarter beating estimates and the average surprise over the last four reports was 2.2% above estimates. The typical two-day reaction after recent reports was that the stock rose 0.9%.

There are 17 analysts with ratings and the consensus rating is Buy; 59% of those analysts rate the stock Buy or Strong Buy. The consensus price target is $112.00, 36.0% above the closing price. That gap between target and market price highlights divergent views: analysts see upside on a valuation basis, while short-term market action reflected concern over near-term margin pressure from fuel costs.

What to watch

• Next report: February 4, 2027
• Last report date: October 29, 2026: earnings per share of $3.08 against $3.07 expected, 0.3% above estimates
• Market value: $3.61 billion
• Price to trailing earnings: 8.0 times trailing earnings
• Distance from 52-week high: 30.1% below the 52-week high