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Air Lease to Report Q3 Earnings: Here's What to Expect

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Air Lease Corporation (AL - Free Report) is scheduled to report third-quarter 2024 results on Nov. 7, after market close.

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

Air Lease has a mixed earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average surprise of 10.11%.

The Zacks Consensus Estimate for AL’s third-quarter 2024 earnings has been revised downward by 2.4% in the past 60 days.

Given this backdrop, let’s see how things have shaped up for AL this earnings season.

The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $681.7 million, suggesting an uptick of 3.4% from third-quarter 2023 actuals. The top line is likely to have benefited from an improved demand scenario.

We expect third-quarter revenues from rental flight equipment to be $638.4 million, which indicates 6% growth from the year-ago reported figure. We expect aircraft sales, trading activity and other sources’ third-quarter revenues to be $95 million, indicating 71.5% growth from the year-ago reported figure.

On the contrary, we expect AL’s third-quarter bottom-line performance to have been affected by high operating expenses. Elevated interest expenses are likely to have pushed up operating costs.

Air Lease Corporation Price and EPS Surprise

Air Lease Corporation Price and EPS Surprise

Air Lease Corporation price-eps-surprise | Air Lease Corporation Quote

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Air Lease. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

AL has an Earnings ESP of 0.00% and a Zacks Rank #3 presently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AL’s Q2 Highlights

Air Lease reported second-quarter 2024 earnings of $1.23 per share, which 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.

Revenues from the rental of flight equipment fell 0.4% year over year to $609.5 million in the reported quarter. 

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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