AIRCASTLE LTD AYR

Mar 08, 2007

AYR will release fourth quarter and year-end results on March 15. Analysts expect the company to earn 37 cents per share, up a penny from last week. The company exceeded estimates by over 14% in its September quarter, coming in with 32 cents per share. The stock is trading at 17x 2007 estimates, well below the projected long-term growth rate of 25%.

Full Analysis

Aircastle Limited (AYR) engages in the acquisition, ownership, and lease of commercial jet aircraft to passenger and cargo airlines worldwide. It also makes investments in other aviation assets, including debt securities secured by commercial jet aircraft.

As of March 31, 2006, the company?s aircraft portfolio consisted of 42 aircraft that were leased to 24 lessees located in 16 countries, and managed through its offices in the United States, Ireland, and Singapore.

The company, which went public in August, plans to finance the acquisitions through company stock and borrowings. It expects to close on 28 of the 38 aircraft this year. The remainder will close by February 2009. The aircraft, which include new freighters, converted freighters and passenger models, brings the company's fleet to 115.

Aircastle just sured up its cash position by raising $446 million in a Follow-On Offering of 13.5 million common shares. The offering was priced at $33 per share. The company gave underwriters the option to buy up to around 2 million shares to cover overallotments.

AYR will release fourth quarter and year-end results on March 15. Analysts expect the company to earn 37 cents per share, up a penny from last week. The company exceeded estimates by over 14% in its September quarter, coming in with 32 cents per share. The stock is trading at 17x 2007 estimates, well below the projected long-term growth rate of 25%.

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