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Air Transport Services (ATSG) Stock Up 19.5% on Q2 Earnings Beat
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Air Transport Services Group, Inc. (ATSG - Free Report) stock gained 19.5% since its second-quarter 2023 earnings release on Aug 3.The uptick can be attributed to better-than-expected earnings and revenue performance.
Quarterly earnings per share (EPS) of 57 cents beat the Zacks Consensus Estimate of 37 cents but declined 3.3% year over year. Revenues of $529.3 million surpassed the Zacks Consensus Estimate of $514.6 million and rose 3.8% year over year.
Air Transport Services’ total fleet in service included 125 aircraft (18 passengers and 107 freighters) at the end of second-quarter 2023 compared with 121 at the end of prior-year quarter.
Air Transport Services Group, Inc Price, Consensus and EPS Surprise
Total operating expenses increased 4.6% to $459.59 million. Adjusted EBITDA fell 0.4% year over year to $157.23 million.
Operating cash flow increased to $192.19 million from $124.54 million a year ago. In the second quarter, adjusted free cash flow was $136.63 million compared with $71.96 million a year ago.
Management still expects 2023 adjusted EBITDA in the range of $610 million-$620 million. ATSG has reduced its capital spending for 2023 by $65 million to $785 million, including $240 million for sustaining capex and $545 million for growth. Management expects 2023 EPS in the range of $1.65-$1.80 (prior view: $1.55-$1.70).
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
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Air Transport Services (ATSG) Stock Up 19.5% on Q2 Earnings Beat
Air Transport Services Group, Inc. (ATSG - Free Report) stock gained 19.5% since its second-quarter 2023 earnings release on Aug 3.The uptick can be attributed to better-than-expected earnings and revenue performance.
Quarterly earnings per share (EPS) of 57 cents beat the Zacks Consensus Estimate of 37 cents but declined 3.3% year over year. Revenues of $529.3 million surpassed the Zacks Consensus Estimate of $514.6 million and rose 3.8% year over year.
Air Transport Services’ total fleet in service included 125 aircraft (18 passengers and 107 freighters) at the end of second-quarter 2023 compared with 121 at the end of prior-year quarter.
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 4.6% to $459.59 million. Adjusted EBITDA fell 0.4% year over year to $157.23 million.
Operating cash flow increased to $192.19 million from $124.54 million a year ago. In the second quarter, adjusted free cash flow was $136.63 million compared with $71.96 million a year ago.
Management still expects 2023 adjusted EBITDA in the range of $610 million-$620 million. ATSG has reduced its capital spending for 2023 by $65 million to $785 million, including $240 million for sustaining capex and $545 million for growth. Management expects 2023 EPS in the range of $1.65-$1.80 (prior view: $1.55-$1.70).
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) second-quarter 2023 EPS of $1.81 missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
JBHT’s total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload and a 4% decline in productivity in Dedicated Capacity Solutions on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Delta Air Lines (DAL - Free Report) reported better-than-expected revenues and EPS, driven by strong air-travel demand. DAL’s second-quarter 2023 EPS (excluding 16 cents from non-recurring items) of $2.68 comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported EPS of $1.44 a year ago, dull compared to the current scenario, as air-travel demand was not so buoyant then.
DAL’s total revenues of $15,578 million beat the Zacks Consensus Estimate of $14,991.6 million. Total revenues increased 12.69% on a year-over-year basis, driven by higher air-travel demand.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2023 EPS of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air-travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.