Air Lease Corporation’s ( AL Quick Quote AL - Free Report) first-quarter 2021 earnings of 70 cents per share missed the Zacks Consensus Estimate of $1.01. Moreover, the bottom line plunged 40.2% year over year due to lower revenues and increased costs. Results reflect the impact of coronavirus on the company’s operations. Quarterly revenues of $474.8 million lagged the Zacks Consensus Estimate of $510.9 million and also declined 7.2% year over year due to 5.7% decrease in revenues from the rental of flight equipment. Notably, rental of flight equipment revenues contributed 98.6% to the top line. Other Statistics
Revenues from aircraft sales, trading activity and other sources fell 54.2% to $6.73 million in the reported quarter. Total expenses rose 9.3% to $371.30 million due to higher interest expenses and depreciation of flight equipment costs. The company’s collection rate was 84% for the first quarter, compared with 88% in the fourth quarter of 2020.
As of Mar 31, 2021, Air Lease owned 342 aircraft with a net book value of $20.8 billion. Total fleet size at the end of the first quarter was 799 (including owned fleet of 342), flat compared with December 2020. Liquidity
Air Lease, carrying a Zacks Rank #5 (Strong Sell), exited the first quarter with cash and cash equivalents of $1.33 billion compared with $1.73 billion at 2020-end. As of Mar 31, 2021, the company had $16.17 billion of debt financing, net of discount and issuance costs compared with $16.52 billion as of Dec 31, 2020.
At the end of the first quarter, Air Lease had a strong liquidity position of $7.5 billion, which should help the company tackle coronavirus-induced challenges efficiently. Dividend Update
Air Lease’s board approved a quarterly cash dividend of 16 cents per share, payable to shareholders on Jul 9, of record as of Jun 8. Additionally, the company’s board extended its share-repurchase program, authorizing to buyback up to $100 million through Dec 31, 2021.
Air Lease anticipates its collection rate to remain under pressure due to the effects of COVID-19. While the company expects aircraft sales activity to increase in 2021 compared with the year-ago levels, it does not expect the same to return to pre-pandemic levels in the year. Additionally, the company anticipates reduced capital expenditures to lower revenue growth in 2021.
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks
Transportation sector. Canadian National Railway Company ( CNI Quick Quote CNI - Free Report) , carrying a Zacks Rank #3 (Hold), reported first-quarter 2021 earnings (excluding 11 cents from non-recurring items) of 97 cents per share (C$1.23), missing the Zacks Consensus Estimate of 99 cents. Quarterly revenues of $2,791.6 million (C$3,535 million) lagged the Zacks Consensus Estimate of $2,813.1 million. Landstar System ( LSTR Quick Quote LSTR - Free Report) , sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus estimate of $1.61. Additionally, revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million. You can see . the complete list of today's Zacks #1 Rank stocks here Southwest Airlines ( LUV Quick Quote LUV - Free Report) , carrying a Zacks Rank of 3, incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Meanwhile, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million. +1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
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