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Air Lease (AL) Misses Q3 Earnings Estimates, Hikes Dividend
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Air Lease Corporation’s (AL - Free Report) third-quarter 2020 earnings of $1.02 per share missed the Zacks Consensus Estimate by a penny. The bottom line also declined 23.9% year over year. Results reflect the impact of coronavirus on the company’s operations.
Quarterly revenues of $493.6 million also lagged the Zacks Consensus Estimate of $500.9 million. The top line slipped 7% year over year due to an approximate 5% decrease in revenues from the rental of flight equipment. Notably, rental of flight equipment revenues contributed 94.9% to the top line.
Other Statistics
Revenues from aircraft sales, trading activity and other sources fell 33.8% to $25.16 million in the reported quarter. Total expenses inched up nearly 1% to $340.35 million due to higher interest expenses and depreciation of flight equipment costs.
As of Sep 30, 2020, Air Lease owned 308 aircraft with a net book value of $19.5 billion. Total fleet size at the end of the third quarter was 786 (including owned fleet of 308) 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 #3 (Hold), exited the quarter with cash and cash equivalents of $1.24 billion compared with $317.49 million at 2019 end. As of Sep 30, 2020, the company had $15.18 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 $7.2 billion, which should help the company tackle the coronavirus-induced challenges efficiently.
Dividend Hike & New Share Repurchase Program
Air Lease’s board raised its quarterly cash dividend by approximately 7% to 16 cents per share (annually 64 cents). The new dividend is payable to shareholders on Jan 6, 2021, of record as of Dec 18, 2020.
Additionally, the board approved a share buyback program, authorizing the company to repurchase up to $100 million shares through Jun 15, 2021.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ third-quarter results.
Expeditors International of Washington (EXPD - Free Report) , carrying a Zacks Rank #2 (Buy), reported third-quarter 2020 earnings of $1.12 per share, surpassing the Zacks Consensus Estimate of 98 cents. Total revenues of $2,464.8 million also beat the Zacks Consensus Estimate of $2,315.1 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gol Linhas Aereas Inteligentes SA , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding 89 cents from non-recurring items) of 91 cents per share in the third quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 80 cents. Net operating revenues of $181.4 million also missed the Zacks Consensus Estimate of $188 million.
Schneider National Inc (SNDR - Free Report) , carrying a Zacks Rank #3, reported third-quarter earnings (excluding 6 cents from non-recurring items) of 31 cents per share, matching the Zacks Consensus Estimate. Operating revenues of $1,135.7 million surpassed the Zacks Consensus Estimate of $1,122.1 million.
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Air Lease (AL) Misses Q3 Earnings Estimates, Hikes Dividend
Air Lease Corporation’s (AL - Free Report) third-quarter 2020 earnings of $1.02 per share missed the Zacks Consensus Estimate by a penny. The bottom line also declined 23.9% year over year. Results reflect the impact of coronavirus on the company’s operations.
Quarterly revenues of $493.6 million also lagged the Zacks Consensus Estimate of $500.9 million. The top line slipped 7% year over year due to an approximate 5% decrease in revenues from the rental of flight equipment. Notably, rental of flight equipment revenues contributed 94.9% to the top line.
Other Statistics
Revenues from aircraft sales, trading activity and other sources fell 33.8% to $25.16 million in the reported quarter. Total expenses inched up nearly 1% to $340.35 million due to higher interest expenses and depreciation of flight equipment costs.
As of Sep 30, 2020, Air Lease owned 308 aircraft with a net book value of $19.5 billion. Total fleet size at the end of the third quarter was 786 (including owned fleet of 308) 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 #3 (Hold), exited the quarter with cash and cash equivalents of $1.24 billion compared with $317.49 million at 2019 end. As of Sep 30, 2020, the company had $15.18 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 $7.2 billion, which should help the company tackle the coronavirus-induced challenges efficiently.
Dividend Hike & New Share Repurchase Program
Air Lease’s board raised its quarterly cash dividend by approximately 7% to 16 cents per share (annually 64 cents). The new dividend is payable to shareholders on Jan 6, 2021, of record as of Dec 18, 2020.
Additionally, the board approved a share buyback program, authorizing the company to repurchase up to $100 million shares through Jun 15, 2021.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ third-quarter results.
Expeditors International of Washington (EXPD - Free Report) , carrying a Zacks Rank #2 (Buy), reported third-quarter 2020 earnings of $1.12 per share, surpassing the Zacks Consensus Estimate of 98 cents. Total revenues of $2,464.8 million also beat the Zacks Consensus Estimate of $2,315.1 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gol Linhas Aereas Inteligentes SA , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding 89 cents from non-recurring items) of 91 cents per share in the third quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 80 cents. Net operating revenues of $181.4 million also missed the Zacks Consensus Estimate of $188 million.
Schneider National Inc (SNDR - Free Report) , carrying a Zacks Rank #3, reported third-quarter earnings (excluding 6 cents from non-recurring items) of 31 cents per share, matching the Zacks Consensus Estimate. Operating revenues of $1,135.7 million surpassed the Zacks Consensus Estimate of $1,122.1 million.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>