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Fly Leasing (FLY) to Report Q1 Earnings: What's in Store?

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Fly Leasing Limited is scheduled to release first-quarter 2020 results on May 8, before market open.

The company’s earnings outshined the Zacks Consensus Estimate in each of the last four quarters, the average being 25.3%.

Fly Leasing Limited Price and EPS Surprise


Fly Leasing Limited Price and EPS Surprise

Fly Leasing Limited price-eps-surprise | Fly Leasing Limited Quote

Moreover, the Zacks Consensus Estimate for first-quarter earnings has been revised 4% downward to $1.43 over the past 60 days.

Against this backdrop, let’s examine the factors that are likely to have impacted the company’s March-quarter performance.

Fly Leasing’s first-quarter performance is expected to have been affected by coronavirus-induced supply-chain disruptions. With the airline industry reeling under the coronavirus pandemic, Fly Leasing’s March quarter is likely to have been dull.  Fortunes of this company that purchases and leases commercial aircraft under multi-year contracts to various airlines are tied to the aviation industry. Low demand for aircraft is likely to have dealt a major blow to Fly Leasing’s first-quarter performance.

Due to the ongoing global health emergency, operating lease rental revenues, accounting for bulk of Fly Leasing’s top line, are likely to have taken a beating in the March quarter. Again, delivery delays from the likes of Airbus might have dampened Fly Leasing’s performance.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Fly Leasing this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Fly Leasing has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Fly Leasing carries a Zacks Rank #4 (Sell), currently.

Highlights of Q4 Earnings

In the last reported quarter, Fly Leasing’s earnings (excluding 6 cents from non-recurring items) of $2.49 per share comfortably surpassed the Zacks Consensus Estimate of $1.71. Moreover, the bottom line skyrocketed more than 100% on a year-over-year basis. Results were aided by higher revenues.

Stocks to Consider

Investors interested in the transportation space may consider Scorpio Tankers (STNG - Free Report) , Copa Holdings (CPA - Free Report) and Allegiant Travel Company (ALGT - Free Report) as these stocks have the right combination of elements to beat on earnings this reporting cycle.

Scorpio Tankers has an Earnings ESP of +3.59% and a Zacks Rank #2. The company will report first-quarter 2020 earnings on May 6.

Copa Holdings has an Earnings ESP of +7.17% and a Zacks Rank of 3. The company will report first-quarter 2020 earnings on May 6.

Allegiant Travel has an Earnings ESP of +14.63% and a Zacks Rank #3. The company will report first-quarter 2020 earnings on May 12.


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