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Air Lease (AL) Beats on Q3 Earnings & Revenues, Hikes Dividend

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Air Lease Corporation’s (AL - Free Report) third-quarter 2021 earnings of 87 cents per share surpassed the Zacks Consensus Estimate of 75 cents. However, the bottom line declined 14.7% year over year due to increased costs.

Quarterly revenues of $524.5 million outperformed the Zacks Consensus Estimate of $498.5 million and also increased 6.3% year over year. The top line benefited from 10.9% increase in revenues from rental of flight equipment, which contributed 99.1% to the top line. Continued growth in fleet and increase in cash collections drove the top line.

Other Statistics

Revenues from aircraft sales, trading activity and other sources plunged 80.2% to $4.97 million in the reported quarter. Total expenses rose 14.6% to $389.96 million due to higher interest expenses and depreciation of flight equipment costs. The company’s collection rate was 94% for the third quarter compared with 87% in the second quarter. The improvement was due to cash payments received from Vietnam Airlines. While the company’s collection rate is improving, Air Lease said that the prevalent pandemic and newer variants of the virus might continue to put pressure on its collection rate.

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

 
As of Sep 30, 2021, Air Lease owned 370 aircraft with a net book value of $22.1 billion. Total fleet size at the end of the third quarter was 803 (including owned fleet of 370) compared with 799 at the end of December 2020.

Liquidity

Air Lease, carrying a Zacks Rank #5 (Strong Sell), exited the third quarter with cash and cash equivalents of $1.87 billion compared with $1.73 billion at 2020-end. As of Sep 30, 2021, the company had $17.62 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 third quarter, Air Lease had a strong liquidity position of $8.4 billion, which should help the company tackle coronavirus-induced challenges efficiently.

Dividend Hike

Air Lease’s board approved a dividend hike of approximately 15.6% to 18.5 cents per share (annually: 74 cents), payable to shareholders on Jan 5, 2022, of record as of Dec 17, 2021. This marks the company’s 9th dividend increase.

Sectorial Snapshots

Let’s take a look at some of the other earnings releases from companies within the Zacks Transportation sector.

Expeditors International of Washington (EXPD - Free Report) , carrying a Zacks Rank #3 (Hold), reported third-quarter 2021 earnings of $2.09 per share, which surpassed the Zacks Consensus Estimate of $1.67. Total revenues of $4,319.3 million also outperformed the Zacks Consensus Estimate of $3,454.3 million.
 
Triton International Limited (TRTN - Free Report) , carrying a Zacks Rank #2 (Buy), reported third-quarter 2021 earnings (excluding 60 cents from non-recurring items) of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.21. Total leasing revenues of $400.2 million also outperformed the Zacks Consensus Estimate of $392.9 million. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Old Dominion Freight Line (ODFL - Free Report) , carrying a Zacks Rank #2, reported third-quarter 2021 earnings per share of $2.47, outpacing the Zacks Consensus Estimate by 10 cents. Revenues of $1400 million also surpassed the Zacks Consensus Estimate of $1,360.3 million.