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Air Transport Services (ATSG) Up 3.1% Since Q3 Earnings Beat
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Shares of Air Transport Services (ATSG - Free Report) have gained 3.11% since its earnings release on Nov 3. The uptick is owing to its better-than-expected earnings per share and revenues reported for third-quarter 2022.
Earnings Report in Detail
Air Transport Services’ third-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 60 cents per share surpassed the Zacks Consensus Estimate of 53 cents. The bottom line was flat year over year. Revenues not only rose 10.9% year over year to $517 million but also surpassed the Zacks Consensus Estimate of $499 million.
The top line was boosted by higher revenues from both segments, namely ACMI (aircraft, crew, maintenance & insurance) services and Cargo Aircraft Management (CAM). Revenues from the ACMI services unit increased 8% year over year to $357.4 million. Revenues from the CAM segment increased 17.9% to $109.5 million, while the same from other operations rose 20% to $108.4 million.
Revenues from the CAM segment in the reported quarter were bumped up by a larger fleet of externally leased Boeing 767s (seven have been leased since September 2021) from the year-ago level. 89 CAM-owned 767 freighter aircraft were leased to external customers as of Sep 30, 2022. Revenues from the ACMI services unit benefited from better cargo operations. Revenue block hours increased 3% year over year in the quarter.
Air Transport Services’ total fleet included 124 aircraft (18 passenger and 106 freighter) in service at the end of the September quarter of 2022 compared with 117 at the end of the December quarter of 2021. ATSG expects to have a fleet (in service) of 18 passenger and 112 freighter planes at the end of 2022.
Air Transport Services Group, Inc Price, Consensus and EPS Surprise
Total operating expenses increased 21.3% in the September quarter to $444.2 million with fuel expenses increasing 36.6% as oil price rises. Adjusted EBITDA increased 6.3% year over year to $162.7 million owing to a strong freighter leasing scenario. Operating cash flow increased to $148 million from $122 million a year ago.
Adjusted free cash flow was $91.4 million compared with $72.6 million a year ago. Capex in the quarter was $56.5 million compared with $49.5 million a year ago.
Management still expects its 2022 adjusted EBITDA to be $640 million (nearly $100 million above the 2021 actuals). ATSG expects its capital spending for 2022 to be $625 million, including $195 million for sustaining capex and $430 million for growth.
Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, tepid in comparison to the current scenario, as air-travel demand was not so upbeat then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An uptick in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to bullish air-travel demand. The optimistic air-travel demand scenario is also evident from the 13.2% increase in total operating revenues from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across the Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.
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Air Transport Services (ATSG) Up 3.1% Since Q3 Earnings Beat
Shares of Air Transport Services (ATSG - Free Report) have gained 3.11% since its earnings release on Nov 3. The uptick is owing to its better-than-expected earnings per share and revenues reported for third-quarter 2022.
Earnings Report in Detail
Air Transport Services’ third-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 60 cents per share surpassed the Zacks Consensus Estimate of 53 cents. The bottom line was flat year over year. Revenues not only rose 10.9% year over year to $517 million but also surpassed the Zacks Consensus Estimate of $499 million.
The top line was boosted by higher revenues from both segments, namely ACMI (aircraft, crew, maintenance & insurance) services and Cargo Aircraft Management (CAM). Revenues from the ACMI services unit increased 8% year over year to $357.4 million. Revenues from the CAM segment increased 17.9% to $109.5 million, while the same from other operations rose 20% to $108.4 million.
Revenues from the CAM segment in the reported quarter were bumped up by a larger fleet of externally leased Boeing 767s (seven have been leased since September 2021) from the year-ago level. 89 CAM-owned 767 freighter aircraft were leased to external customers as of Sep 30, 2022. Revenues from the ACMI services unit benefited from better cargo operations. Revenue block hours increased 3% year over year in the quarter.
Air Transport Services’ total fleet included 124 aircraft (18 passenger and 106 freighter) in service at the end of the September quarter of 2022 compared with 117 at the end of the December quarter of 2021. ATSG expects to have a fleet (in service) of 18 passenger and 112 freighter planes at the end of 2022.
Air Transport Services Group, Inc Price, Consensus and EPS Surprise
Air Transport Services Group, Inc price-consensus-eps-surprise-chart | Air Transport Services Group, Inc Quote
Total operating expenses increased 21.3% in the September quarter to $444.2 million with fuel expenses increasing 36.6% as oil price rises. Adjusted EBITDA increased 6.3% year over year to $162.7 million owing to a strong freighter leasing scenario. Operating cash flow increased to $148 million from $122 million a year ago.
Adjusted free cash flow was $91.4 million compared with $72.6 million a year ago. Capex in the quarter was $56.5 million compared with $49.5 million a year ago.
Currently, ATSG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Management still expects its 2022 adjusted EBITDA to be $640 million (nearly $100 million above the 2021 actuals). ATSG expects its capital spending for 2022 to be $625 million, including $195 million for sustaining capex and $430 million for growth.
Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, tepid in comparison to the current scenario, as air-travel demand was not so upbeat then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An uptick in air-travel demand aided results.
In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to bullish air-travel demand. The optimistic air-travel demand scenario is also evident from the 13.2% increase in total operating revenues from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across the Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.