Sky Harbour Group (NYSE:SKYH – Get Free Report) posted its quarterly earnings results on Tuesday. The company reported ($0.11) earnings per share (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 6.45% and a net margin of 2.73%. The company had revenue of $8.36 million during the quarter, compared to the consensus estimate 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 Stock Down 2.9%
Sky Harbour Group stock traded down $0.32 during mid-day trading on Tuesday, hitting $10.57. 356,006 shares of the company’s stock were exchanged, compared to its average volume of 158,935. The firm has a market capitalization of $810.22 million, a P/E ratio of -58.75 and a beta of 1.40. Sky Harbour Group has a fifty-two week low of $8.22 and a fifty-two week high of $11.70. The company’s 50 day simple moving average is $9.84 and its 200-day simple moving average is $9.79.
Insider Activity
In other Sky Harbour Group news, CFO Francisco Gonzalez bought 3,850 shares of the firm’s stock in a transaction on Friday, October 2nd. The stock was purchased at an average cost of $9.25 per share, with a total value of $35,612.50. Following the completion of the purchase, the chief financial officer owned 718,538 shares in the company, valued at approximately $6,646,476.50. The trade was a 0.54% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Andrew Gessow purchased 5,000 shares of the stock in a transaction on Friday, August 14th. The stock was acquired at an average price of $10.85 per share, with a total value of $54,250.00. Following the completion of the acquisition, the director directly owned 22,910 shares of the company’s stock, valued at approximately $248,573.50. This represents a 27.92% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have acquired 13,950 shares of company stock worth $139,568. Corporate insiders own 40.70% of the company’s stock.
Wall Street Analysts Forecast Growth
Several research firms have weighed in on SKYH. Wall Street Zen raised Sky Harbour Group from a “strong sell” rating to a “sell” rating in a research note on Sunday, September 20th. Weiss Ratings cut Sky Harbour Group from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, October 23rd. Roth Capital reaffirmed a “buy” rating and issued a $12.50 price target on shares of Sky Harbour Group in a research note on Tuesday, August 18th. Finally, BTIG Research reiterated a “buy” rating and issued a $13.00 price target on shares of Sky Harbour Group in a research report on Thursday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $12.75.
Check Out Our Latest Report on SKYH
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.
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