Sky Harbour Group (NYSE:SKYH) Announces Earnings Results, Misses Estimates By $0.01 EPS

Sky Harbour Group (NYSE:SKYH) released its quarterly earnings data on Wednesday. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.01), Zacks reports. The firm had revenue of $0.01 million for the quarter, compared to analysts’ expectations of $9.44 million. Sky Harbour Group had a return on equity of 6.83% and a net margin of 63.95%.

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

• Q2 revenue rose 50% year over year and 13% sequentially, driven by new campus openings, higher occupancy, and rent increases. Operating cash flow turned positive at approximately $0.5 million, which management described as a company milestone.
• Sky Harbour Capital revenue increased 79% year over year, while operating cash flow reached nearly $3 million for the quarter and marked the subsidiary’s 10th consecutive quarter of positive cash flow. Management expects operating leverage from Opa-locka Phase II and Addison Phase II to expand gross profit and EBITDA margins.
• Management reaffirmed year-end guidance for an annualized revenue run rate of $42 million to $46 million and adjusted EBITDA of $4 million to $6 million. It expects further gains from Opa-locka leasing, higher occupancy at Denver and Phoenix, and upcoming Bradley and Addison Phase II openings.
• Liquidity totaled more than $207 million in cash and U.S. Treasuries, plus approximately $130 million of available construction financing; the company also completed a $40 million common-stock placement. Management said potential public-warrant exercises could provide another roughly $94 million, but the equity issuance diluted existing shareholders.
• Adjusted EBITDA remained negative at approximately $0.9 million in Q2, while operating expenses continued to rise due partly to campus headcount and non-cash ground-lease accruals. Leasing has been slower than expected at Denver Centennial, and management acknowledged potential construction-inflation headwinds despite current costs of about $242 per square foot.

Sky Harbour Group Trading Down 6.0%

Shares of Sky Harbour Group stock traded down $0.69 on Thursday, reaching $10.79. 333,081 shares of the stock were exchanged, compared to its average volume of 149,290. The firm has a market capitalization of $826.14 million, a PE ratio of 271.53 and a beta of 1.31. Sky Harbour Group has a 1-year low of $8.22 and a 1-year high of $11.70. The business has a fifty day moving average price of $10.05 and a two-hundred day moving average price of $9.70.

Wall Street Analyst Weigh In

A number of research firms recently commented on SKYH. Roth Capital began coverage on shares of Sky Harbour Group in a research report on Friday, July 31st. They issued a “buy” rating and a $14.00 target price on the stock. Weiss Ratings raised Sky Harbour Group from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, July 6th. Finally, Noble Financial upgraded Sky Harbour Group to a “strong-buy” rating in a research note on Monday, May 18th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $13.50.

Insider Transactions at Sky Harbour Group

In other Sky Harbour Group news, Director Andrew J. Gessow bought 5,000 shares of the business’s stock in a transaction dated Wednesday, May 20th. The stock was acquired at an average cost of $8.95 per share, with a total value of $44,750.00. Following the purchase, the director owned 17,910 shares in the company, valued at approximately $160,294.50. This represents a 38.73% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 40.70% of the company’s stock.

Institutional Investors Weigh In On Sky Harbour Group

Institutional investors and hedge funds have recently modified their holdings of the company. First Manhattan CO. LLC. purchased a new position in Sky Harbour Group during the 4th quarter valued at about $1,203,000. Barclays PLC lifted its stake in shares of Sky Harbour Group by 9.1% during the 4th quarter. Barclays PLC now owns 33,262 shares of the company’s stock worth $298,000 after purchasing an additional 2,785 shares during the period. State Street Corp boosted its holdings in shares of Sky Harbour Group by 2.5% during the fourth quarter. State Street Corp now owns 581,050 shares of the company’s stock worth $5,212,000 after purchasing an additional 14,035 shares during the last quarter. Wells Fargo & Company MN grew its position in shares of Sky Harbour Group by 65.4% in the fourth quarter. Wells Fargo & Company MN now owns 23,267 shares of the company’s stock valued at $209,000 after purchasing an additional 9,199 shares during the period. Finally, Deutsche Bank AG grew its position in shares of Sky Harbour Group by 9.9% in the fourth quarter. Deutsche Bank AG now owns 15,007 shares of the company’s stock valued at $135,000 after purchasing an additional 1,357 shares during the period. Institutional investors and hedge funds own 14.75% of the company’s stock.

Sky Harbour Group Company Profile

Sky Harbour Group Inc is a U.S.-based real estate development and operating company focused on private aviation infrastructure. The company specializes in the acquisition, design and management of fixed-base operations (FBOs), aircraft hangarage and private terminals that serve business and general aviation operators. By providing expedited ground handling, concierge services and state-of-the-art facilities, Sky Harbour seeks to streamline the operations of private jet owners, fractional-ownership programs and charter operators while reducing congestion at major airports.

Through strategic leases and joint-venture partnerships, Sky Harbour has established a growing presence at key regional and metropolitan airports across the United States.