Air Transport Services Group, Inc. (ATSG - Free Report) stock gained 19.5% since its second-quarter 2023 earnings release on Aug 3.The uptick can be attributed to better-than-expected earnings and revenue performance.
Quarterly earnings per share (EPS) of 57 cents beat the Zacks Consensus Estimate of 37 cents but declined 3.3% year over year. Revenues of $529.3 million surpassed the Zacks Consensus Estimate of $514.6 million and rose 3.8% year over year.
Air Transport Services’ total fleet in service included 125 aircraft (18 passengers and 107 freighters) at the end of second-quarter 2023 compared with 121 at the end of prior-year quarter.
Total operating expenses increased 4.6% to $459.59 million. Adjusted EBITDA fell 0.4% year over year to $157.23 million.
Operating cash flow increased to $192.19 million from $124.54 million a year ago. In the second quarter, adjusted free cash flow was $136.63 million compared with $71.96 million a year ago.
Management still expects 2023 adjusted EBITDA in the range of $610 million-$620 million. ATSG has reduced its capital spending for 2023 by $65 million to $785 million, including $240 million for sustaining capex and $545 million for growth. Management expects 2023 EPS in the range of $1.65-$1.80 (prior view: $1.55-$1.70).
Air Transport Services carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
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Air Transport Services Group, Inc. (ATSG - Free Report) stock gained 19.5% since its second-quarter 2023 earnings release on Aug 3.The uptick can be attributed to better-than-expected earnings and revenue performance.
Quarterly earnings per share (EPS) of 57 cents beat the Zacks Consensus Estimate of 37 cents but declined 3.3% year over year. Revenues of $529.3 million surpassed the Zacks Consensus Estimate of $514.6 million and rose 3.8% year over year.
Air Transport Services’ total fleet in service included 125 aircraft (18 passengers and 107 freighters) at the end of second-quarter 2023 compared with 121 at the end of prior-year quarter.
Total operating expenses increased 4.6% to $459.59 million. Adjusted EBITDA fell 0.4% year over year to $157.23 million.
Operating cash flow increased to $192.19 million from $124.54 million a year ago. In the second quarter, adjusted free cash flow was $136.63 million compared with $71.96 million a year ago.
Management still expects 2023 adjusted EBITDA in the range of $610 million-$620 million. ATSG has reduced its capital spending for 2023 by $65 million to $785 million, including $240 million for sustaining capex and $545 million for growth. Management expects 2023 EPS in the range of $1.65-$1.80 (prior view: $1.55-$1.70).
Air Transport Services carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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