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Air Transport Services (ATSG) Q3 Earnings Beat, Increase Y/Y

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Air Transport Services Group’s (ATSG - Free Report) third-quarter 2021 earnings (excluding 24 cents from non-recurring items) of 60 cents per share surpassed the Zacks Consensus Estimate of 46 cents. Moreover, the bottom line improved 36.4% year over year on the back of an impressive revenue performance. Revenues not only rose 15.3% year over year to $465 million but also surpassed the Zacks Consensus Estimate of $430 million.

The top line was boosted by higher revenues from both segments, namely ACMI (aircraft, crew, maintenance & insurance) services and Cargo Aircraft Management (CAM). Before eliminations, revenues from the ACMI services unit increased 10.2% to $330.9 million. Revenues from the CAM segment increased 21.8% to $92.9 million while revenues from other operations rose 9.7% to $90.3 million.

Revenues from the CAM segment in the reported quarter were bumped up by the external leases of 13 more 767-300 freighters from the year-ago level. Segmental revenues from external customers rose 38% in the September quarter. Revenues from the ACMI services unit benefited from better airline operations. Block hours increased in the quarter owing to the Afghanistan evacuation missions for the U.S. government.

The company’s total fleet included 130 aircraft (19 passenger and 111 freighter) in service at the end of the September quarter of 2021 compared with 112 at the end of the third quarter of 2020. Of the 130 planes, 122 were owned by CAM.

Total operating expenses increased 10.3% in the September quarter to $366.2 million with                    fuel expenses rising 38.7% as oil price surges. Capital expenditures in the first nine months of 2021 increased 9% to $428.1 million.

Outlook

The company, currently carrying a Zacks Rank #3 (Hold), now expects 2021 adjusted EBITDA to be at least $535 million, indicating a 1.9% increase from the earlier guidance. Capital expenditures for 2021 are projected at $530 million ($335 million for growth and $195 million for sustaining capital). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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) 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) 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.

Old Dominion Freight Line (ODFL - Free Report) 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.