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Air Lease (AL) Q4 Earnings Surpass Estimates, High Costs Ail
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Air Lease Corporation (AL - Free Report) reported fourth-quarter 2022 earnings of $1.21 per share which surpassed the Zacks Consensus Estimate of $1.05. However, the bottom line decreased 2.4% year over year due to high costs.
Total revenues of $601.6 million beat the Zacks Consensus Estimate of $598.6 million. The top line edged up 0.7% year over year owing to consistent growth in the company’s fleet, lower lease restructuring and cash basis losses pertaining to COVID-19.
Revenues from rental of flight equipment declined 4.6% year over year to $561.3 million in the reported quarter. However, revenues from aircraft sales, trading activity and other sources increased 20.3% from the year-ago quarter to $40.3 million.
Operating expenses rose 10.6% to $452.3 million, mainly due to higher depreciation of flight equipment costs. As of Dec 31, 2022, Air Lease owned 417 aircraft with a net book value of $24.5 billion. Total fleet size at the end of fourth quarter was 900 (including owned fleet of 417 and managed fleet of 85) compared with 905 at the end of December 2021.
Per Air Lease’s Chairman Steven Udvar hazy delays pertaining to aircraft delivery delays continued due to labor and parts shortages in the aerospace industry.
Liquidity
Air Lease exited 2022 with cash and cash equivalents of $766.4 million compared with $1.09 billion at December 2021 end. As of Dec 31, 2022, AL had $18.64 billion of debt financing, net of discount and issuance costs compared with $17 billion as of Dec 31, 2021.
Q4 Performance of Some Other Transportation Companies
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million and increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-COVID-19) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29. DAL reported earnings of 22 cents per share a year ago, dull in comparison with the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
CSX Corporation’s (CSX - Free Report) fourth-quarter 2022 earnings of 49 cents per share beat the Zacks Consensus Estimate of 47 cents and improved 16.67% year over year.
Total revenues of $3,730 million surpassed the Zacks Consensus Estimate of $3,722.1 million. The top line increased 8.84% year over year on the back of higher fuel surcharge, pricing gains, an increase in volumes, and storage and other revenues. Overall revenues per unit increased 11%.
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Air Lease (AL) Q4 Earnings Surpass Estimates, High Costs Ail
Air Lease Corporation (AL - Free Report) reported fourth-quarter 2022 earnings of $1.21 per share which surpassed the Zacks Consensus Estimate of $1.05. However, the bottom line decreased 2.4% year over year due to high costs.
Total revenues of $601.6 million beat the Zacks Consensus Estimate of $598.6 million. The top line edged up 0.7% year over year owing to consistent growth in the company’s fleet, lower lease restructuring and cash basis losses pertaining to COVID-19.
Revenues from rental of flight equipment declined 4.6% year over year to $561.3 million in the reported quarter. However, revenues from aircraft sales, trading activity and other sources increased 20.3% from the year-ago quarter to $40.3 million.
Operating expenses rose 10.6% to $452.3 million, mainly due to higher depreciation of flight equipment costs. As of Dec 31, 2022, Air Lease owned 417 aircraft with a net book value of $24.5 billion. Total fleet size at the end of fourth quarter was 900 (including owned fleet of 417 and managed fleet of 85) compared with 905 at the end of December 2021.
Per Air Lease’s Chairman Steven Udvar hazy delays pertaining to aircraft delivery delays continued due to labor and parts shortages in the aerospace industry.
Liquidity
Air Lease exited 2022 with cash and cash equivalents of $766.4 million compared with $1.09 billion at December 2021 end. As of Dec 31, 2022, AL had $18.64 billion of debt financing, net of discount and issuance costs compared with $17 billion as of Dec 31, 2021.
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.
Q4 Performance of Some Other Transportation Companies
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million and increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-COVID-19) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29. DAL reported earnings of 22 cents per share a year ago, dull in comparison with the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
CSX Corporation’s (CSX - Free Report) fourth-quarter 2022 earnings of 49 cents per share beat the Zacks Consensus Estimate of 47 cents and improved 16.67% year over year.
Total revenues of $3,730 million surpassed the Zacks Consensus Estimate of $3,722.1 million. The top line increased 8.84% year over year on the back of higher fuel surcharge, pricing gains, an increase in volumes, and storage and other revenues. Overall revenues per unit increased 11%.