Sky Harbour Group (NYSE:SKYH) Announces Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Sky Harbour Group (NYSE:SKYH) announced its quarterly earnings results on Wednesday. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.14) by $0.10, FiscalAI reports. The firm had revenue of $0.01 million for the quarter, compared to analyst estimates of $9.44 million. Sky Harbour Group had a net margin of 2.73% and a return on equity of 6.42%.

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 Stock Down 4.6%

SKYH opened at $10.96 on Friday. Sky Harbour Group has a 12 month low of $8.22 and a 12 month high of $11.70. The company has a fifty day simple moving average of $10.08 and a 200 day simple moving average of $9.71. The stock has a market cap of $838.67 million, a P/E ratio of -60.88 and a beta of 1.31.

Analyst Ratings Changes

SKYH has been the subject of a number of recent research reports. Roth Capital initiated coverage on Sky Harbour Group in a report on Friday, July 31st. They issued a “buy” rating and a $14.00 target price for the company. Noble Financial upgraded shares of Sky Harbour Group to a “strong-buy” rating in a research report on Monday, May 18th. Finally, Weiss Ratings raised Sky Harbour Group from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 6th. Two analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $13.50.

Insider Transactions at Sky Harbour Group

In related news, Director Andrew J. Gessow bought 5,000 shares of the company’s stock in a transaction on Wednesday, May 20th. The shares were purchased at an average cost of $8.95 per share, for a total transaction of $44,750.00. Following the acquisition, the director owned 17,910 shares of the company’s stock, valued at approximately $160,294.50. This represents a 38.73% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 40.70% of the company’s stock.

Institutional Trading of Sky Harbour Group

A number of institutional investors have recently modified their holdings of SKYH. First Manhattan CO. LLC. bought a new stake in Sky Harbour Group in the 4th quarter valued at approximately $1,203,000. Barclays PLC grew its position in shares of Sky Harbour Group by 9.1% in the 4th quarter. Barclays PLC now owns 33,262 shares of the company’s stock valued at $298,000 after acquiring an additional 2,785 shares during the period. State Street Corp grew its holdings in 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 period. Wells Fargo & Company MN boosted its stake in shares of Sky Harbour Group by 65.4% during the 4th quarter. Wells Fargo & Company MN now owns 23,267 shares of the company’s stock worth $209,000 after acquiring an additional 9,199 shares during the period. Finally, Deutsche Bank AG increased its holdings 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 last quarter. 14.75% of the stock is currently owned by institutional investors.

About Sky Harbour Group

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.