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Air Lease (AL) Q2 Earnings Miss Estimates, Revenues Down Y/Y
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Air Lease Corporation’s (AL - Free Report) second-quarter 2024 earnings of $1.23 per share missed the Zacks Consensus Estimate of $1.56. Total revenues of $667.3 million lagged the Zacks Consensus Estimate of $687.9 million and fell 0.8% year over year.
Other Statistics
Revenues from the rental of flight equipment fell 0.4% year over year to $609.5 million in the reported quarter. Despite growth in the company’s fleet, AL’s rental revenues declined due to the sales of older aircraft with higher lease yields and the purchases of new aircraft with lower initial lease yields. Further, AL witnessed a decline in lease revenues of almost $13 million compared with the prior period, owing to fewer aircraft returns during the second quarter.
Revenues from aircraft sales, trading activity and other sources fell 5.5% from the year-ago quarter to $57.78 million, owing to reduced gains from aircraft sales. AL witnessed $40 million in gains from the sale of 11 aircraft during the reported quarter compared with $45 million in gains from the sale of eight aircraft during the second quarter of 2023.
Operating expenses rose 6% to $539.5 million.
As of Jun 30, 2024, Air Lease owned 474 aircraft with a net book value of $26.8 billion. The total fleet size at the second-quarter end was 848 (including the owned fleet of 474, 67 managed fleet and 307 aircraft on order).
Air Lease exited the second quarter with $454.12 million in cash and cash equivalents compared with $554.4 million at the prior-quarter end. Debt financing, net of discount and issuance costs, amounted to $19.67 billion at the second-quarter end compared with $19.48 billion at the prior-quarter end.
Air Lease Corporation Price, Consensus and EPS Surprise
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
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Air Lease (AL) Q2 Earnings Miss Estimates, Revenues Down Y/Y
Air Lease Corporation’s (AL - Free Report) second-quarter 2024 earnings of $1.23 per share missed the Zacks Consensus Estimate of $1.56. Total revenues of $667.3 million lagged the Zacks Consensus Estimate of $687.9 million and fell 0.8% year over year.
Other Statistics
Revenues from the rental of flight equipment fell 0.4% year over year to $609.5 million in the reported quarter. Despite growth in the company’s fleet, AL’s rental revenues declined due to the sales of older aircraft with higher lease yields and the purchases of new aircraft with lower initial lease yields. Further, AL witnessed a decline in lease revenues of almost $13 million compared with the prior period, owing to fewer aircraft returns during the second quarter.
Revenues from aircraft sales, trading activity and other sources fell 5.5% from the year-ago quarter to $57.78 million, owing to reduced gains from aircraft sales. AL witnessed $40 million in gains from the sale of 11 aircraft during the reported quarter compared with $45 million in gains from the sale of eight aircraft during the second quarter of 2023.
Operating expenses rose 6% to $539.5 million.
As of Jun 30, 2024, Air Lease owned 474 aircraft with a net book value of $26.8 billion. The total fleet size at the second-quarter end was 848 (including the owned fleet of 474, 67 managed fleet and 307 aircraft on order).
Air Lease exited the second quarter with $454.12 million in cash and cash equivalents compared with $554.4 million at the prior-quarter end. Debt financing, net of discount and issuance costs, amounted to $19.67 billion at the second-quarter end compared with $19.48 billion at the prior-quarter end.
Air Lease Corporation Price, Consensus and EPS Surprise
Air Lease Corporation price-consensus-eps-surprise-chart | Air Lease Corporation Quote
Currently, Air Lease carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.