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Air Transport Services (ATSG) Q4 Earnings In Line, Rise Y/Y
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Air Transport Services Group’s (ATSG - Free Report) fourth-quarter 2021 earnings (excluding 8 cents from non-recurring items) of 52 cents per share matched the Zacks Consensus Estimate. The bottom line improved 36.8% year over year on the back of an impressive revenue performance. Revenues not only rose 20.8% year over year to $482 million but also surpassed the Zacks Consensus Estimate of $446 million.
Air Transport Services Group, Inc Price, Consensus and EPS Surprise
The top line was boosted by higher revenues from both segments, namely ACMI (aircraft, crew, maintenance & insurance) services and Cargo Aircraft Management (CAM). Before eliminations, revenues from the ACMI services unit increased 21.2% to $333.79 million. Revenues from the CAM segment increased 26.53% to $105.48 million while revenues from other operations fell marginally to $94.34 million.
Revenues from the CAM segment in the reported quarter were bumped up by the external leases of four more 767-300 freighters from the year-ago level. Segmental revenues from external customers rose 31% in the December quarter. Revenues from the ACMI services unit benefited from better airline operations. Block hours increased 19% year over year in the quarter.
ATSG’s total fleet included 131 aircraft (19 passenger and 112 freighter) in service at the end of the December quarter of 2021 compared with 114 at the end of the fourth quarter of 2020. Of the 130 planes, 120 were owned by CAM. Total operating expenses increased 18.3% in the December quarter to $402.37 million with fuel expenses rising 78.4% as oil price surges.
Outlook
ATSG, currently carrying a Zacks Rank #3 (Hold), expects 2022 adjusted EBITDA to be $640 million, nearly $100 million above the 2021 levels. Capital expenditures for 2022 are projected at $590 million ($390 million for growth and $200 million for sustaining capital). Driven by the strength of its freighter leasing and airline operations, ATSG expects adjusted EPS for 2022 to be $2, indicating growth of 20% from the 2021 reported level. The expectation is above the Zacks Consensus Estimate of $1.86.
Let’s look at some of the other earnings releases within the Zacks Transportation sector.
Expeditors International of Washington (EXPD - Free Report) reported fourth-quarter 2021 earnings of $2.66 per share, surpassing the Zacks Consensus Estimate of $2.02. The bottom line surged more than 100% year over year. Results benefited from higher airfreight tonnage volumes.
Expeditors’ total revenues of $5,396.3 million outperformed the Zacks Consensus Estimate of $4,257 million and also increased significantly year over year. Higher revenues across all segments boosted the top line.
GATX Corporation (GATX - Free Report) reported fourth-quarter 2021 earnings (excluding 11 cents from non-recurring items) of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.07. The bottom line surged more than 200% year over year.
GATX’s total revenues of $321 million increased 5.3% year over year, mainly on a 5.2% rise in lease revenues, which came in at $288.4 million. Lease revenues contributed 89.8% to the top line.
Werner Enterprises (WERN - Free Report) reported fourth-quarter 2021 earnings (excluding 2 cents from non-recurring items) of $1.13 per share, which surpassed the Zacks Consensus Estimate of 96 cents. The bottom line rose 27% on a year-over-year basis.
Werner’s total revenues of $765.2 million also outperformed the Zacks Consensus Estimate of $725.1 million. The top line increased 23.4% on a year-over-year basis, primarily on higher revenues in the Truckload Transportation Services and Logistics segments.
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Air Transport Services (ATSG) Q4 Earnings In Line, Rise Y/Y
Air Transport Services Group’s (ATSG - Free Report) fourth-quarter 2021 earnings (excluding 8 cents from non-recurring items) of 52 cents per share matched the Zacks Consensus Estimate. The bottom line improved 36.8% year over year on the back of an impressive revenue performance. Revenues not only rose 20.8% year over year to $482 million but also surpassed the Zacks Consensus Estimate of $446 million.
Air Transport Services Group, Inc Price, Consensus and EPS Surprise
Air Transport Services Group, Inc price-consensus-eps-surprise-chart | Air Transport Services Group, Inc Quote
The top line was boosted by higher revenues from both segments, namely ACMI (aircraft, crew, maintenance & insurance) services and Cargo Aircraft Management (CAM). Before eliminations, revenues from the ACMI services unit increased 21.2% to $333.79 million. Revenues from the CAM segment increased 26.53% to $105.48 million while revenues from other operations fell marginally to $94.34 million.
Revenues from the CAM segment in the reported quarter were bumped up by the external leases of four more 767-300 freighters from the year-ago level. Segmental revenues from external customers rose 31% in the December quarter. Revenues from the ACMI services unit benefited from better airline operations. Block hours increased 19% year over year in the quarter.
ATSG’s total fleet included 131 aircraft (19 passenger and 112 freighter) in service at the end of the December quarter of 2021 compared with 114 at the end of the fourth quarter of 2020. Of the 130 planes, 120 were owned by CAM. Total operating expenses increased 18.3% in the December quarter to $402.37 million with fuel expenses rising 78.4% as oil price surges.
Outlook
ATSG, currently carrying a Zacks Rank #3 (Hold), expects 2022 adjusted EBITDA to be $640 million, nearly $100 million above the 2021 levels. Capital expenditures for 2022 are projected at $590 million ($390 million for growth and $200 million for sustaining capital). Driven by the strength of its freighter leasing and airline operations, ATSG expects adjusted EPS for 2022 to be $2, indicating growth of 20% from the 2021 reported level. The expectation is above the Zacks Consensus Estimate of $1.86.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Sectorial Snapshots
Let’s look at some of the other earnings releases within the Zacks Transportation sector.
Expeditors International of Washington (EXPD - Free Report) reported fourth-quarter 2021 earnings of $2.66 per share, surpassing the Zacks Consensus Estimate of $2.02. The bottom line surged more than 100% year over year. Results benefited from higher airfreight tonnage volumes.
Expeditors’ total revenues of $5,396.3 million outperformed the Zacks Consensus Estimate of $4,257 million and also increased significantly year over year. Higher revenues across all segments boosted the top line.
GATX Corporation (GATX - Free Report) reported fourth-quarter 2021 earnings (excluding 11 cents from non-recurring items) of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.07. The bottom line surged more than 200% year over year.
GATX’s total revenues of $321 million increased 5.3% year over year, mainly on a 5.2% rise in lease revenues, which came in at $288.4 million. Lease revenues contributed 89.8% to the top line.
Werner Enterprises (WERN - Free Report) reported fourth-quarter 2021 earnings (excluding 2 cents from non-recurring items) of $1.13 per share, which surpassed the Zacks Consensus Estimate of 96 cents. The bottom line rose 27% on a year-over-year basis.
Werner’s total revenues of $765.2 million also outperformed the Zacks Consensus Estimate of $725.1 million. The top line increased 23.4% on a year-over-year basis, primarily on higher revenues in the Truckload Transportation Services and Logistics segments.