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Air Transport Services (ATSG) Q3 Earnings Top, Increase Y/Y
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Air Transport Services Group’s (ATSG - Free Report) third-quarter 2020 earnings (excluding 54 cents from non-recurring items) of 44 cents per share surpassed the Zacks Consensus Estimate by 11 cents. Moreover, the bottom line improved 41.9% year over year. Results were aided by a 10.4% year over year increase in total revenues to $404.1 million. The top line also surpassed the Zacks Consensus Estimate of $381.7 million.
Higher revenues from both primary segments contributed to the top line. Before eliminations, revenues from the Cargo Aircraft Management (CAM) segment climbed 7.4% to $76.26 million, while the same from ACMI services increased 10.3% to $300.19 million. Revenues from other operations decreased 6%.
Notably, revenues from the CAM segment were bumped up by the deployment of 11 more 767-300 freighters compared with the number added on Sep 30, 2019. Segmental revenues from external customers rose 22% in the September quarter. Meanwhile, an uptick in revenues from the ACMI unit was owing to additional charter assignments for the company’s subsidiary Omni Air International from the federal government and increased flying for package delivery networks. Due to the coronavirus-induced restrictions, Omni Air’s block hours for commercial passenger operations were down in excess of 80%.
The company’s total fleet included 101 aircraft in service at the end of the September quarter of 2020 compared with 92 at the end of the third quarter of 2019. Of the 101 planes, 96 were owned by CAM, three were leased by third parties and the remaining two were customer-provided.
Total operating expenses inched up 1.5% in the September quarter to $330.18 million, mainly due to a 16.2% rise in costs on salaries, wages and benefits. Capital expenditure flared up 17% to $394.3 million in the first nine months of 2020. The amount included $273.4 million on the purchase of eight Boeing 767 planes.
Air Transport Services Group, Inc Price, Consensus and EPS Surprise
The company, currently carrying a Zacks Rank #2 (Buy), expects 2020 adjusted EBITDA to be roughly $490 million, indicating an improvement from the 2019 reported figure of $452 million. Capital expenditures for 2020 and 2021 are projected at roughly $485 million and $425 million, respectively. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Sectorial Snapshots
Let’s look into some other Zacks Transportation sector companies’ third-quarter earnings.
Southwest Airlines (LUV - Free Report) incurred a loss of $1.99 per share (excluding 3 cents from non-recurring items) in the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $2.44. Moreover, operating revenues of $1,793 million surpassed the Zacks Consensus Estimate of $1,678.2 million.
Trinity Industries (TRN - Free Report) reported third-quarter 2020 earnings (excluding 4 cents from non-recurring items) of 17 cents per share, massively surpassing the Zacks Consensus Estimate of 5 cents. Total revenues of $459.4 million also outperformed the Zacks Consensus Estimate of $443.8 million.
CSX Corporation (CSX - Free Report) reported third-quarter 2020 earnings of 96 cents per share, surpassing the Zacks Consensus Estimate of 93 cents. However, total revenues of $2,648 million lagged the Zacks Consensus Estimate of $2,704.6 million.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Air Transport Services (ATSG) Q3 Earnings Top, Increase Y/Y
Air Transport Services Group’s (ATSG - Free Report) third-quarter 2020 earnings (excluding 54 cents from non-recurring items) of 44 cents per share surpassed the Zacks Consensus Estimate by 11 cents. Moreover, the bottom line improved 41.9% year over year. Results were aided by a 10.4% year over year increase in total revenues to $404.1 million. The top line also surpassed the Zacks Consensus Estimate of $381.7 million.
Higher revenues from both primary segments contributed to the top line. Before eliminations, revenues from the Cargo Aircraft Management (CAM) segment climbed 7.4% to $76.26 million, while the same from ACMI services increased 10.3% to $300.19 million. Revenues from other operations decreased 6%.
Notably, revenues from the CAM segment were bumped up by the deployment of 11 more 767-300 freighters compared with the number added on Sep 30, 2019. Segmental revenues from external customers rose 22% in the September quarter. Meanwhile, an uptick in revenues from the ACMI unit was owing to additional charter assignments for the company’s subsidiary Omni Air International from the federal government and increased flying for package delivery networks. Due to the coronavirus-induced restrictions, Omni Air’s block hours for commercial passenger operations were down in excess of 80%.
The company’s total fleet included 101 aircraft in service at the end of the September quarter of 2020 compared with 92 at the end of the third quarter of 2019. Of the 101 planes, 96 were owned by CAM, three were leased by third parties and the remaining two were customer-provided.
Total operating expenses inched up 1.5% in the September quarter to $330.18 million, mainly due to a 16.2% rise in costs on salaries, wages and benefits. Capital expenditure flared up 17% to $394.3 million in the first nine months of 2020. The amount included $273.4 million on the purchase of eight Boeing 767 planes.
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
Outlook
The company, currently carrying a Zacks Rank #2 (Buy), expects 2020 adjusted EBITDA to be roughly $490 million, indicating an improvement from the 2019 reported figure of $452 million. Capital expenditures for 2020 and 2021 are projected at roughly $485 million and $425 million, respectively. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Sectorial Snapshots
Let’s look into some other Zacks Transportation sector companies’ third-quarter earnings.
Southwest Airlines (LUV - Free Report) incurred a loss of $1.99 per share (excluding 3 cents from non-recurring items) in the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $2.44. Moreover, operating revenues of $1,793 million surpassed the Zacks Consensus Estimate of $1,678.2 million.
Trinity Industries (TRN - Free Report) reported third-quarter 2020 earnings (excluding 4 cents from non-recurring items) of 17 cents per share, massively surpassing the Zacks Consensus Estimate of 5 cents. Total revenues of $459.4 million also outperformed the Zacks Consensus Estimate of $443.8 million.
CSX Corporation (CSX - Free Report) reported third-quarter 2020 earnings of 96 cents per share, surpassing the Zacks Consensus Estimate of 93 cents. However, total revenues of $2,648 million lagged the Zacks Consensus Estimate of $2,704.6 million.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>