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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 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 (GOL - Free Report) , 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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