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Air Transport Services (ATSG) Q1 Earnings Beat Mark, Rise Y/Y
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Air Transport Services Group’s (ATSG - Free Report) first-quarter 2022 earnings (excluding 1 cent from non-recurring items) of 56 cents per share surpassed the Zacks Consensus Estimate of 45 cents. The bottom line surged in excess of 100% year over year on the back of an impressive revenue performance. Revenues not only rose 29.2% year over year to $485.9 million but also surpassed the Zacks Consensus Estimate of $458.7 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 34% year over year to $330 million. Revenues from the CAM segment increased 28.4% to $106.9 million while the same from other operations rose 9.4% to $102.53 million.
Revenues from the CAM segment in the reported quarter were bumped up by a larger fleet of externally leased Boeing 767s from the year-ago level. Aircraft leasing and related revenues from external customers rose 26% year over year in the March quarter. Revenues from the ACMI services unit benefited from better airline operations. Revenue block hours increased 21% year over year in the quarter.
ATSG’s total fleet included 119 aircraft (19 passenger and 100 freighter) in service at the end of the March quarter of 2022 compared with 117 at the end of the fourth quarter of 2021. ATSG expects to have a fleet (in service) comprising 18 passenger and 115 freighter planes at the end of 2022. Total operating expenses increased 30.3% in the March quarter to $416 million with fuel expenses rising 98.2% as oil price surges.
2022 Outlook
ATSG, currently carrying a Zacks Rank #2 (Buy), expects 2022 adjusted EBITDA to be $640 million, nearly $100 million above the 2021 levels. Capital expenditures for 2022 are projected at $590 million ($390 million for growth and $200 million for sustaining capital).
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss borne by UAL as coronavirus woes continue to shrink air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million.
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Air Transport Services (ATSG) Q1 Earnings Beat Mark, Rise Y/Y
Air Transport Services Group’s (ATSG - Free Report) first-quarter 2022 earnings (excluding 1 cent from non-recurring items) of 56 cents per share surpassed the Zacks Consensus Estimate of 45 cents. The bottom line surged in excess of 100% year over year on the back of an impressive revenue performance. Revenues not only rose 29.2% year over year to $485.9 million but also surpassed the Zacks Consensus Estimate of $458.7 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 34% year over year to $330 million. Revenues from the CAM segment increased 28.4% to $106.9 million while the same from other operations rose 9.4% to $102.53 million.
Revenues from the CAM segment in the reported quarter were bumped up by a larger fleet of externally leased Boeing 767s from the year-ago level. Aircraft leasing and related revenues from external customers rose 26% year over year in the March quarter. Revenues from the ACMI services unit benefited from better airline operations. Revenue block hours increased 21% year over year in the quarter.
ATSG’s total fleet included 119 aircraft (19 passenger and 100 freighter) in service at the end of the March quarter of 2022 compared with 117 at the end of the fourth quarter of 2021. ATSG expects to have a fleet (in service) comprising 18 passenger and 115 freighter planes at the end of 2022. Total operating expenses increased 30.3% in the March quarter to $416 million with fuel expenses rising 98.2% as oil price surges.
2022 Outlook
ATSG, currently carrying a Zacks Rank #2 (Buy), expects 2022 adjusted EBITDA to be $640 million, nearly $100 million above the 2021 levels. Capital expenditures for 2022 are projected at $590 million ($390 million for growth and $200 million for sustaining capital).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots
Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) ,CSX Corporation (CSX - Free Report) and United Airlines (UAL - Free Report) recently reported first-quarter 2022 results.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss borne by UAL as coronavirus woes continue to shrink air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million.