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Air Lease (AL) Q4 Earnings Beat, Fall Y/Y on Coronavirus Woes
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Air Lease Corporation’s (AL - Free Report) fourth-quarter 2020 earnings of 94 cents per share beat the Zacks Consensus Estimate of 76 cents. However, the bottom line plunged 33.8% year over year. Results reflect the impact of coronavirus on the company’s operations.
Quarterly revenues of $489.1 million missed the Zacks Consensus Estimate of $509 million and also declined 10.8% year over year due to 4.1% decrease in revenues from the rental of flight equipment. Notably, rental of flight equipment revenues contributed 98.9% to the top line.
Other Statistics
Revenues from aircraft sales, trading activity and other sources fell 87.6% to $5.48 million in the reported quarter. Total expenses inched up 2.7% to $351.28 million due to higher interest expenses and depreciation of flight equipment costs.
As of Dec 31, 2020, Air Lease owned 332 aircraft with a net book value of $20.4 billion. Total fleet size at the end of the fourth quarter was 799 (including owned fleet of 332) compared with 858 (including owned fleet of 292) at 2019-end.
Air Lease Corporation Price, Consensus and EPS Surprise
Air Lease, carrying a Zacks Rank #4 (Sell), exited the quarter with cash and cash equivalents of $1.73 billion compared with $317.49 million at 2019 end. As of Dec 31, 2020, the company had $16.52 billion of debt financing, net of discount and issuance costs compared with $13.58 billion as of Dec 31, 2019.
Air Lease has a strong liquidity position of $7.7 billion, which should help the company tackle coronavirus-induced challenges efficiently.
Dividend Update
Air Lease’s board approved a quarterly cash dividend of 16 cents per share, payable to shareholders on Apr 7, 2021 of record as of Mar 19, 2021.
Outlook
Due to aircraft delivery delays, thanks to the effects of the COVID-19 pandemic, Air Lease anticipates reduced sales activity in 2021 as was the case in 2020. The company expects capital expenditures to be significantly less in 2021 than what it had planned prior to the pandemic. While this should boost the company’s liquidity position, it will also hinder its revenue growth. Further, Air Lease expects coronavirus-led woes to continue to put pressure on its collection rate.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ fourth-quarter results.
Triton International Limited , sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2020 earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.42. However, total leasing revenues of $337.3 million missed the Zacks Consensus Estimate of $350.5 million. You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors International of Washington, Inc. (EXPD - Free Report) , carrying a Zacks Rank #3 (Hold), reported fourth-quarter 2020 earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.04. Additionally, total revenues of $3,169.2 million outperformed the Zacks Consensus Estimate of $2,397 million.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , reported fourth-quarter 2020 earnings (excluding 16 cents from non-recurring items) of 98 cents per share, missing the Zacks Consensus Estimate of $1.06. Total sales of $2,023.7 million also fell short of the Zacks Consensus Estimate of $2,106.5 million. The stock carries a Zacks Rank #4.
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Air Lease (AL) Q4 Earnings Beat, Fall Y/Y on Coronavirus Woes
Air Lease Corporation’s (AL - Free Report) fourth-quarter 2020 earnings of 94 cents per share beat the Zacks Consensus Estimate of 76 cents. However, the bottom line plunged 33.8% year over year. Results reflect the impact of coronavirus on the company’s operations.
Quarterly revenues of $489.1 million missed the Zacks Consensus Estimate of $509 million and also declined 10.8% year over year due to 4.1% decrease in revenues from the rental of flight equipment. Notably, rental of flight equipment revenues contributed 98.9% to the top line.
Other Statistics
Revenues from aircraft sales, trading activity and other sources fell 87.6% to $5.48 million in the reported quarter. Total expenses inched up 2.7% to $351.28 million due to higher interest expenses and depreciation of flight equipment costs.
As of Dec 31, 2020, Air Lease owned 332 aircraft with a net book value of $20.4 billion. Total fleet size at the end of the fourth quarter was 799 (including owned fleet of 332) compared with 858 (including owned fleet of 292) at 2019-end.
Air Lease Corporation Price, Consensus and EPS Surprise
Air Lease Corporation price-consensus-eps-surprise-chart | Air Lease Corporation Quote
Liquidity
Air Lease, carrying a Zacks Rank #4 (Sell), exited the quarter with cash and cash equivalents of $1.73 billion compared with $317.49 million at 2019 end. As of Dec 31, 2020, the company had $16.52 billion of debt financing, net of discount and issuance costs compared with $13.58 billion as of Dec 31, 2019.
Air Lease has a strong liquidity position of $7.7 billion, which should help the company tackle coronavirus-induced challenges efficiently.
Dividend Update
Air Lease’s board approved a quarterly cash dividend of 16 cents per share, payable to shareholders on Apr 7, 2021 of record as of Mar 19, 2021.
Outlook
Due to aircraft delivery delays, thanks to the effects of the COVID-19 pandemic, Air Lease anticipates reduced sales activity in 2021 as was the case in 2020. The company expects capital expenditures to be significantly less in 2021 than what it had planned prior to the pandemic. While this should boost the company’s liquidity position, it will also hinder its revenue growth. Further, Air Lease expects coronavirus-led woes to continue to put pressure on its collection rate.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ fourth-quarter results.
Triton International Limited , sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2020 earnings of $1.70 per share, beating the Zacks Consensus Estimate of $1.42. However, total leasing revenues of $337.3 million missed the Zacks Consensus Estimate of $350.5 million. You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors International of Washington, Inc. (EXPD - Free Report) , carrying a Zacks Rank #3 (Hold), reported fourth-quarter 2020 earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.04. Additionally, total revenues of $3,169.2 million outperformed the Zacks Consensus Estimate of $2,397 million.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , reported fourth-quarter 2020 earnings (excluding 16 cents from non-recurring items) of 98 cents per share, missing the Zacks Consensus Estimate of $1.06. Total sales of $2,023.7 million also fell short of the Zacks Consensus Estimate of $2,106.5 million. The stock carries a Zacks Rank #4.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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