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Air Transport Services (ATSG) Lags on Q1 Earnings & Revenues
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Air Transport Services Group, Inc. (ATSG - Free Report) first-quarter 2023 earnings of 36 cents per share missed the Zacks Consensus Estimate of 47 cents and declined 35.7% year over year. Revenues of $501.09 million missed the Zacks Consensus Estimate of $504.1 million but rose 3.1% year over year.
Air Transport Services’ total fleet in service included 129 aircraft (18 passenger and 111 freighter) in service at first-quarter 2023-end compared with 119 at first-quarter 2022-end. ATSG expects a fleet (in service) of 18 passenger and 124 freighter planes at 2023-end.
Air Transport Services Group, Inc Price, Consensus and EPS Surprise
Total operating expenses increased 9% to $453.67 million, with fuel expenses increasing 10.6% due to a rise in oil prices. Adjusted EBITDA fell 12.5% year over year to $138.01 million.
Operating cash flow increased to $216.38 million from $125.67 million a year ago. Adjusted free cash flow was $162.18 million compared with $89.33 million a year ago.
Management now expects 2023 adjusted EBITDA to be in the range of $610 million-$620 million(prior view: $650 million to $660 million range). ATSG expects capital spending for 2023 to be $850 million, including $260 million for sustaining capex and $590 million for growth. Management expects 2023 earnings per share in the range of $1.55-$1.70(prior view: $1.85-$2.00).
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 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 $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK - Free Report) reported first-quarter 2023 loss of 62 cents per share, wider thanthe Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.
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Air Transport Services (ATSG) Lags on Q1 Earnings & Revenues
Air Transport Services Group, Inc. (ATSG - Free Report) first-quarter 2023 earnings of 36 cents per share missed the Zacks Consensus Estimate of 47 cents and declined 35.7% year over year. Revenues of $501.09 million missed the Zacks Consensus Estimate of $504.1 million but rose 3.1% year over year.
Air Transport Services’ total fleet in service included 129 aircraft (18 passenger and 111 freighter) in service at first-quarter 2023-end compared with 119 at first-quarter 2022-end. ATSG expects a fleet (in service) of 18 passenger and 124 freighter planes at 2023-end.
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 9% to $453.67 million, with fuel expenses increasing 10.6% due to a rise in oil prices. Adjusted EBITDA fell 12.5% year over year to $138.01 million.
Operating cash flow increased to $216.38 million from $125.67 million a year ago. Adjusted free cash flow was $162.18 million compared with $89.33 million a year ago.
Management now expects 2023 adjusted EBITDA to be in the range of $610 million-$620 million(prior view: $650 million to $660 million range). ATSG expects capital spending for 2023 to be $850 million, including $260 million for sustaining capex and $590 million for growth. Management expects 2023 earnings per share in the range of $1.55-$1.70(prior view: $1.85-$2.00).
Air Transport Services carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 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 $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK - Free Report) reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.