Air Lease (AL) Share Price Increases 1.2% on Q2 Earnings Beat
Air Lease Corporation (AL) stock gained 1.2% 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 $1.10 surpassed the Zacks Consensus Estimate of $1.09 and improved 15.8% on a year-over-year basis.Total revenues of $672.9 million outpaced the Zacks Consensus Estimate of $657.7 million and jumped 20.7% year over year, owing to the continuous growth in the company’s fleet and an increase in sales activity.
Other Statistics
Revenues from the rental of flight equipment climbed 12.2% year over year to $611.73 million in the reported quarter. Revenues from aircraft sales, trading activity and other sources grew more than 100% from the year-ago quarter to $61.17 million.
Operating expenses rose 23.3% to $509 million.
As of Jun 30, 2023, Air Lease owned 448 aircraft with a net book value of $25.5 billion. The total fleet size at the second-quarter end was 887 (including the owned fleet of 448) compared with 899 at March 2023-end.
Liquidity
Air Lease exited the second quarter with cash and cash equivalents of $576.73 million compared with $690.41 million at the first-quarter end. As of Jun 30, 2023, AL had $18.8 billion of debt financing and net of discount and issuance costs compared with $19.4 billion as of March 2023-end.
Dividend Update
On Aug 2, 2023, Air Lease’s board of directors declared a quarterly cash dividend of 20 cents per share, payable on Oct 6 to shareholders of record as of Sep 12.
Currently, Air Lease 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 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 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)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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
Air Lease Corporation (AL) : Free Stock Analysis Report
