Sky Harbour Group (NYSE:SKYH) Issues Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Sky Harbour Group (NYSE:SKYH) released its earnings results on Tuesday. The company reported ($0.11) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.01), Zacks reports. Sky Harbour Group had a return on equity of 4.76% and a net margin of 7.34%. The company had revenue of $8.36 million during the quarter, compared to analysts’ expectations of $10.55 million.

Here are the key takeaways from Sky Harbour Group’s conference call:

• Q3 revenue increased 45% year over year and 7% sequentially, while completed and in-progress construction reached a record $439 million. Management attributed revenue growth to new campus openings and higher occupancy and rents.
• The company lowered its year-end Adjusted EBITDA run-rate outlook to break-even to $4 million, from $4 million to $6 million, citing delayed Addison 2 revenue and startup costs at Bradley. Q3 Adjusted EBITDA was approximately negative $0.5 million, as operating expenses rose ahead of campus openings.
• Sky Harbour reported nearly $200 million in cash and Treasuries, plus about $130 million available under its committed bank facility. Management said its debt is fixed-rate and expects Public Warrant exercises could provide more than $90 million in equity capital.
• The company added Van Nuys to its airport pipeline, expanded plans at Dulles, and announced three third-party construction contracts representing about $38 million in revenue. Management said its in-house steel manufacturing and general contracting capacity could support this business, though it did not disclose expected profitability.
• Leasing remains a key execution challenge, with about 826,000 square feet to fill and management acknowledging that it expanded the leasing team more slowly than it should have. Denver and Phoenix are taking longer to lease than hoped, while construction costs face pressure from steel and labor inflation.

Sky Harbour Group Trading Up 6.7%

NYSE:SKYH opened at $11.29 on Thursday. The company’s 50-day moving average price is $9.86 and its 200-day moving average price is $9.80. Sky Harbour Group has a twelve month low of $8.22 and a twelve month high of $11.70. The company has a market cap of $865.42 million, a P/E ratio of -94.12 and a beta of 1.40.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on SKYH. Weiss Ratings raised shares of Sky Harbour Group from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday. Wall Street Zen raised shares of Sky Harbour Group from a “strong sell” rating to a “sell” rating in a research report on Sunday, September 20th. Roth Capital reiterated a “buy” rating and issued a $12.50 target price on shares of Sky Harbour Group in a report on Tuesday, August 18th. Finally, BTIG Research reissued a “buy” rating and issued a $13.00 price objective on shares of Sky Harbour Group in a research report on Thursday, October 22nd. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Buy” and a consensus price target of $12.75.

Insider Activity

In other news, CFO Francisco Gonzalez purchased 3,850 shares of the business’s stock in a transaction dated Friday, October 2nd. The stock was acquired at an average price of $9.25 per share, for a total transaction of $35,612.50. Following the acquisition, the chief financial officer directly owned 718,538 shares of the company’s stock, valued at approximately $6,646,476.50. This represents a 0.54% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Andrew Gessow acquired 5,000 shares of Sky Harbour Group stock in a transaction that occurred on Friday, August 14th. The stock was bought at an average price of $10.85 per share, for a total transaction of $54,250.00. Following the completion of the acquisition, the director owned 22,910 shares in the company, valued at $248,573.50. This trade represents a 27.92% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 13,950 shares of company stock worth $139,568 over the last quarter. 40.70% of the stock is currently owned by company insiders.

Sky Harbour Group Company Profile

Sky Harbour Group Corporation develops, owns and operates hangar campuses for business aviation in the United States. Its facilities are designed to provide private aircraft owners and operators with dedicated hangar space and related services. The company describes its campuses as “Home Base Operator” facilities, distinguishing them from traditional fixed-base operators that primarily serve transient aircraft. Sky Harbour’s business includes selecting airport sites and developing, leasing and managing hangar facilities.