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Why Is Air Lease (AL) Down 1.7% Since Last Earnings Report?

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A month has gone by since the last earnings report for Air Lease (AL - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Air Lease due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Air Lease's Q4 Earnings Beat Estimates

Air Lease’s fourth-quarter 2020 earnings of 94 cents per share beat the Zacks Consensus Estimate of 76 cents. However, the bottom line plunged 33.8% year over year. Results reflect the impact of coronavirus on the company’s operations.

Quarterly revenues of $489.1 million missed the Zacks Consensus Estimate of $509 million and also declined 10.8% year over year due to 4.1% decrease in revenues from the rental of flight equipment. Notably, rental of flight equipment revenues contributed 98.9% to the top line.

Other Statistics

Revenues from aircraft sales, trading activity and other sources fell 87.6% to $5.48 million in the reported quarter. Total expenses inched up 2.7% to $351.28 million due to higher interest expenses and depreciation of flight equipment costs.

As of Dec 31, 2020, Air Lease owned 332 aircraft with a net book value of $20.4 billion. Total fleet size at the end of the fourth quarter was 799 (including owned fleet of 332) compared with 858 (including owned fleet of 292) at 2019-end.

Liquidity

Air Lease exited the quarter with cash and cash equivalents of $1.73 billion compared with $317.49 million at 2019 end. As of Dec 31, 2020, the company had $16.52 billion of debt financing, net of discount and issuance costs compared with $13.58 billion as of Dec 31, 2019. Air Lease has a liquidity position of $7.7 billion.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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