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Air Transport (ATSG) Q2 Earnings Beat Estimates & Revenues Lag
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Air Transport Services Group’s (ATSG - Free Report) second-quarter 2024 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, namely Cargo Aircraft Management or CAM and ACMI (aircraft, crew, maintenance & insurance) 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.
Air Transport Services Group, Inc Price, Consensus and EPS Surprise
Air Transport’s total fleet in service included 134 aircraft (20 passengers and 114 freighters) at the end of the second quarter of 2024 compared with 125 a year ago. Total operating expenses decreased marginally to $457.1 million.
Adjusted EBITDA fell 17% year over year to $130.4 million. Operating cash flow declined to $137.1 million from $192.2 million a year ago. Adjusted free cash flow was $109.8 million compared with $136.6 million in the prior year.
2024 Adjusted EBITDA Outlook Raised
Air Transport now anticipates adjusted EBITDA of almost $526 million (earlier outlook was $516 million). The improved outlook for adjusted EBITDA is owing to the anticipation of more flying opportunities from 10 Amazon (AMZN - Free Report) -provided 767-300s and new lease commitments for available aircraft.
ATSG expects third-quarter Adjusted EBITDA to be similar to the second quarter as ramp-up costs for adding 10 Amazon-supplied 767 freighters continue but are higher in the fourth quarter when the last few enter service and other peak-season operations occur. Capital spending for the current year is projected to be $390 million. The company expects to end 2024 with a fleet size (in service) of 139 aircraft (20 passengers and 129 freighters).
Currently, Air Transport carries a Zacks Rank #4 (Sell).
Delta Air Lines’ (DAL - Free Report) second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share missed the Zacks Consensus Estimate of $2.37 and decreased 12% year over year.
Revenues of $16.7billion surpassed the Zacks Consensus Estimate of $16.3 billion and increased 7% on a year-over-year basis. Passenger revenues, accounting for 83% of the total revenues, improved 5% year over year.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings (excluding 18 cents from non-recurring items) of $4.14 per share, which surpassed the Zacks Consensus Estimate of $3.97 per share. However, the bottom line decreased 17.69% year over year.
Operating revenues of $15 billion missed the Zacks Consensus Estimate of $15.13 billion. However, the top line increased 5.7% year over year due to upbeat air travel demand. Cargo revenues rose by 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% year over year to $892 million.
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2024 earnings per share of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27.1% year over year.
Total operating revenues of $2.93 billion lagged the Zacks Consensus Estimate of $3.04 billion and fell 6.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.
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Air Transport (ATSG) Q2 Earnings Beat Estimates & Revenues Lag
Air Transport Services Group’s (ATSG - Free Report) second-quarter 2024 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, namely Cargo Aircraft Management or CAM and ACMI (aircraft, crew, maintenance & insurance) 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.
Air Transport Services Group, Inc Price, Consensus and EPS Surprise
Air Transport Services Group, Inc price-consensus-eps-surprise-chart | Air Transport Services Group, Inc Quote
Air Transport’s total fleet in service included 134 aircraft (20 passengers and 114 freighters) at the end of the second quarter of 2024 compared with 125 a year ago. Total operating expenses decreased marginally to $457.1 million.
Adjusted EBITDA fell 17% year over year to $130.4 million. Operating cash flow declined to $137.1 million from $192.2 million a year ago. Adjusted free cash flow was $109.8 million compared with $136.6 million in the prior year.
2024 Adjusted EBITDA Outlook Raised
Air Transport now anticipates adjusted EBITDA of almost $526 million (earlier outlook was $516 million). The improved outlook for adjusted EBITDA is owing to the anticipation of more flying opportunities from 10 Amazon (AMZN - Free Report) -provided 767-300s and new lease commitments for available aircraft.
ATSG expects third-quarter Adjusted EBITDA to be similar to the second quarter as ramp-up costs for adding 10 Amazon-supplied 767 freighters continue but are higher in the fourth quarter when the last few enter service and other peak-season operations occur. Capital spending for the current year is projected to be $390 million. The company expects to end 2024 with a fleet size (in service) of 139 aircraft (20 passengers and 129 freighters).
Currently, Air Transport carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation Companies
Delta Air Lines’ (DAL - Free Report) second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share missed the Zacks Consensus Estimate of $2.37 and decreased 12% year over year.
Revenues of $16.7billion surpassed the Zacks Consensus Estimate of $16.3 billion and increased 7% on a year-over-year basis. Passenger revenues, accounting for 83% of the total revenues, improved 5% year over year.
United Airlines (UAL - Free Report) reported second-quarter 2024 earnings (excluding 18 cents from non-recurring items) of $4.14 per share, which surpassed the Zacks Consensus Estimate of $3.97 per share. However, the bottom line decreased 17.69% year over year.
Operating revenues of $15 billion missed the Zacks Consensus Estimate of $15.13 billion. However, the top line increased 5.7% year over year due to upbeat air travel demand. Cargo revenues rose by 14.4% year over year to $414 million. Revenues from other sources jumped 9.6% year over year to $892 million.
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2024 earnings per share of $1.32 missed the Zacks Consensus Estimate of $1.51 and declined 27.1% year over year.
Total operating revenues of $2.93 billion lagged the Zacks Consensus Estimate of $3.04 billion and fell 6.5% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6% year over year.