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Why Is Air Lease (AL) Up 6.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Air Lease (AL - Free Report) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Air Lease due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Q3 Earnings Beat
Air Lease reported better-than-expected third-quarter 2023 results wherein both earnings and revenues have outpaced the Zacks Consensus Estimate.
Quarterly earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.08 and improved 22.2% on a year-over-year basis. The uptick was backed bygrowth of AL’s fleet and increase in sales activity, partially offset by an increase in interest expense.
Total revenues of $659.4 million outpaced the Zacks Consensus Estimate of $659.2 million and jumped 17.5% year over year, owing to the continuous growth in the company’s fleet and an increase in sales activity. The increase in aircraft sales, trading and other revenue was related to the sale of eight aircraft and one sales-type lease transaction which provided almost $43.9 million in gains.
Other Statistics
Revenues from the rental of flight equipment climbed 11.5% year over year to $604.02 million in the reported quarter. Revenues from aircraft sales, trading activity and other sources grew more than 100% from the year-ago quarter to $55.33 million.
Operating expenses rose 16.7% to $494.3 million.
As of Sep 30, 2023, Air Lease owned 448 aircraft with a net book value of $25.6 billion. The total fleet size at the end of the third quarter was 878 (including the owned fleet of 448) compared with 887 at the end of June 2023.
Liquidity
Air Lease exited the third quarter with cash and cash equivalents of $512.08 million compared with $576.73 million at June 2023-end. As of Sep 30, 2023, AL had $18.6 billion of debt financing and net of discount and issuance costs compared with $18.8 billion as of June 30, 2023.
Dividend Update
On Nov 3, 2023, Air Lease’s board of directors increased its quarterly cash dividend by 5%, from 20 cents per share to 21 cents. The next quarterly dividend of 21 cents per share will be paid on Jan 10, 2024 to holders of record as of Dec 15, 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.71% due to these changes.
VGM Scores
At this time, Air Lease has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Air Lease has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Air Lease belongs to the Zacks Transportation - Equipment and Leasing industry. Another stock from the same industry, Ryder (R - Free Report) , has gained 6.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Ryder reported revenues of $2.92 billion in the last reported quarter, representing a year-over-year change of -3.7%. EPS of $3.58 for the same period compares with $4.45 a year ago.
Ryder is expected to post earnings of $2.77 per share for the current quarter, representing a year-over-year change of -28.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ryder. Also, the stock has a VGM Score of A.
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Why Is Air Lease (AL) Up 6.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Air Lease (AL - Free Report) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Air Lease due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Q3 Earnings Beat
Air Lease reported better-than-expected third-quarter 2023 results wherein both earnings and revenues have outpaced the Zacks Consensus Estimate.
Quarterly earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.08 and improved 22.2% on a year-over-year basis. The uptick was backed bygrowth of AL’s fleet and increase in sales activity, partially offset by an increase in interest expense.
Total revenues of $659.4 million outpaced the Zacks Consensus Estimate of $659.2 million and jumped 17.5% year over year, owing to the continuous growth in the company’s fleet and an increase in sales activity. The increase in aircraft sales, trading and other revenue was related to the sale of eight aircraft and one sales-type lease transaction which provided almost $43.9 million in gains.
Other Statistics
Revenues from the rental of flight equipment climbed 11.5% year over year to $604.02 million in the reported quarter. Revenues from aircraft sales, trading activity and other sources grew more than 100% from the year-ago quarter to $55.33 million.
Operating expenses rose 16.7% to $494.3 million.
As of Sep 30, 2023, Air Lease owned 448 aircraft with a net book value of $25.6 billion. The total fleet size at the end of the third quarter was 878 (including the owned fleet of 448) compared with 887 at the end of June 2023.
Liquidity
Air Lease exited the third quarter with cash and cash equivalents of $512.08 million compared with $576.73 million at June 2023-end. As of Sep 30, 2023, AL had $18.6 billion of debt financing and net of discount and issuance costs compared with $18.8 billion as of June 30, 2023.
Dividend Update
On Nov 3, 2023, Air Lease’s board of directors increased its quarterly cash dividend by 5%, from 20 cents per share to 21 cents. The next quarterly dividend of 21 cents per share will be paid on Jan 10, 2024 to holders of record as of Dec 15, 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.71% due to these changes.
VGM Scores
At this time, Air Lease has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Air Lease has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Air Lease belongs to the Zacks Transportation - Equipment and Leasing industry. Another stock from the same industry, Ryder (R - Free Report) , has gained 6.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Ryder reported revenues of $2.92 billion in the last reported quarter, representing a year-over-year change of -3.7%. EPS of $3.58 for the same period compares with $4.45 a year ago.
Ryder is expected to post earnings of $2.77 per share for the current quarter, representing a year-over-year change of -28.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ryder. Also, the stock has a VGM Score of A.