Industry Analysts Just Made A Sizeable Upgrade To Their SkyWest, Inc. (NASDAQ:SKYW) Revenue Forecasts

SkyWest, Inc. (NASDAQ:SKYW) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following this upgrade, SkyWest's five analysts are forecasting 2022 revenues to be US$2.9b, approximately in line with the last 12 months. Before the latest update, the analysts were foreseeing US$2.6b of revenue in 2022. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

Check out our latest analysis for SkyWest

We'd point out that there was no major changes to their price target of US$40.75, suggesting the latest estimates were not enough to shift their view on the value of the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values SkyWest at US$56.00 per share, while the most bearish prices it at US$30.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 2.3% annualised revenue decline to the end of 2022 is better than the historical trend, which saw revenues shrink 6.4% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 11% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect SkyWest to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at SkyWest.

Unanswered questions? At least one of SkyWest's five analysts has provided estimates out to 2024, which can be seen for free on our platform here.

We also provide an overview of the SkyWest Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.