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Air Lease (AL) Stock Up 0.3% Since Q3 Earnings Release
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Air Lease Corporation (AL - Free Report) stock has gained 0.3% since its third-quarter 2022 earnings release on Nov 3. Quarterly earnings of 90 cents per share surpassed the Zacks Consensus Estimate of 89 cents and improved 3.4% year over year on the back of an increase in revenues.
Total revenues of $561.3 million lagged the Zacks Consensus Estimate of $570 million. However, the top line jumped 7% year over year, owing to the continuous growth in the company’s fleet, lower lease restructuring losses and higher aircraft sales, trading and other revenues. These were partially offset by the loss of rental revenues from the termination of the company’s leasing activities in Russia and cash basis accounting.
Air Lease Corporation Price, Consensus and EPS Surprise
Revenues from the rental of flight equipment climbed 4.2% year over year to $541.39 million in the reported quarter. Revenues from aircraft sales, trading activity and other sources grew more than 100% from the year-ago quarter to $19.94 million.
Operating expenses rose 8.6% to $423.5 million.
As of Sep 30, 2022, Air Lease owned 405 aircraft with a net book value of $23.9 billion. The total fleet size at the end of the third quarter was 904 (including the owned fleet of 405) compared with 911 at the end of June 2022.
Liquidity
Air Lease exited the third quarter with cash and cash equivalents of $1.10 billion compared with $1.01 billion at June 2022-end. As of Sep 30, 2022, AL had $18.77 billion of debt financing and net of discount and issuance costs compared with $18.34 billion as of Jun 30.
At the end of the reported quarter, Air Lease had a strong liquidity position of $6.7 billion, which should help AL going forward.
Dividend Update
Air Lease’s board approved a dividend hike of almost 8.1%, raising the quarterly cash dividend from 18.5 cents per share to 20 cents. The raised dividend will be paid on Jan 10, 2023, to shareholders of record as of Dec 16, 2022.
Delta AirLines’ (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, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the 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 upbeat 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 an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% 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’squarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
Total 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 — 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 Lease (AL) Stock Up 0.3% Since Q3 Earnings Release
Air Lease Corporation (AL - Free Report) stock has gained 0.3% since its third-quarter 2022 earnings release on Nov 3. Quarterly earnings of 90 cents per share surpassed the Zacks Consensus Estimate of 89 cents and improved 3.4% year over year on the back of an increase in revenues.
Total revenues of $561.3 million lagged the Zacks Consensus Estimate of $570 million. However, the top line jumped 7% year over year, owing to the continuous growth in the company’s fleet, lower lease restructuring losses and higher aircraft sales, trading and other revenues. These were partially offset by the loss of rental revenues from the termination of the company’s leasing activities in Russia and cash basis accounting.
Air Lease Corporation Price, Consensus and EPS Surprise
Air Lease Corporation price-consensus-eps-surprise-chart | Air Lease Corporation Quote
Other Statistics
Revenues from the rental of flight equipment climbed 4.2% year over year to $541.39 million in the reported quarter. Revenues from aircraft sales, trading activity and other sources grew more than 100% from the year-ago quarter to $19.94 million.
Operating expenses rose 8.6% to $423.5 million.
As of Sep 30, 2022, Air Lease owned 405 aircraft with a net book value of $23.9 billion. The total fleet size at the end of the third quarter was 904 (including the owned fleet of 405) compared with 911 at the end of June 2022.
Liquidity
Air Lease exited the third quarter with cash and cash equivalents of $1.10 billion compared with $1.01 billion at June 2022-end. As of Sep 30, 2022, AL had $18.77 billion of debt financing and net of discount and issuance costs compared with $18.34 billion as of Jun 30.
At the end of the reported quarter, Air Lease had a strong liquidity position of $6.7 billion, which should help AL going forward.
Dividend Update
Air Lease’s board approved a dividend hike of almost 8.1%, raising the quarterly cash dividend from 18.5 cents per share to 20 cents. The raised dividend will be paid on Jan 10, 2023, to shareholders of record as of Dec 16, 2022.
Currently, Air Lease carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta AirLines’ (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, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the 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 upbeat 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 an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% 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’squarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
Total 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 — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.