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ATSG Gears Up to Report Q3 Earnings: What's in the Offing?

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Air Transport Services Group  is scheduled to report third-quarter 2024 results on Nov. 8 before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

ATSG has a mixed earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average miss is 7.70%.

The Zacks Consensus Estimate for the company’s soon-to-be-reported quarter’s earnings has remained flat at 19 cents per share in the past 60 days.

Air Transport Services Group’s top-line performance is expected to have been bolstered by an increased demand scenario in the September-end quarter. The Zacks Consensus Estimate for revenues is pegged at $509.8 million, which indicates a rise of 4.4% from third-quarter 2023 actuals.

Our estimate for ACMI (aircraft, crew, maintenance, and insurance) Services indicates an increase of 4.2% quarter over quarter, while cargo aircraft management (CAM) is anticipated at $110.9 million.

The company’s robust cost-cutting initiatives are also expected to have boosted its bottom line in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Air Transport Services Group this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Air Transport Services Group has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ATSG’s Q2 Highlights

Quarterly earnings (excluding 8 cents from non-recurring items) of 19 cents per share surpassed the Zacks Consensus Estimate of 16 cents but plunged 66.7% year over year.  Customer revenues (derived after eliminating internal revenues from total revenues) of $488.4 million missed the Zacks Consensus Estimate of $512.3 million and fell 7.7% year over year.

ATSG primarily operates through the following reporting segments: CAM and ACMI Services. Revenues from ACMI Services decreased 7.7% year over year to $338.2 million. Revenues from CAM and other operations declined 6.2% and 11.9% to $104.5 million and $97.64 million, respectively.

Q3 Performances of Other Transportation Companies

Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.

Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year. This included the $380 million impact of the outage caused by CrowdStrike.

Norfolk Southern Corporation’s (NSC - Free Report) third-quarter 2024 earnings (excluding $1.6 from non-recurring items) of $3.25 per share beat the Zacks Consensus Estimate of $3.10 and increased 22.6% year over year due to lower costs.

Railway operating revenues were $3.05 billion in the quarter under review, lagging the Zacks Consensus Estimate of $3.09 billion. The top line increased 2.7% year over year, with the Merchandise and Intermodal segments registering an improvement in revenues.

J.B. Hunt Transport Services’ (JBHT - Free Report) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.

Total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The operating income for the September quarter decreased 7% year over year to $224.1 million.


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