Air Lease (AL) Q2 Earnings Beat Estimates, Increase Y/Y
Air Lease Corporation‘s AL second-quarter 2020 earnings of $1.26 per share surpassed the Zacks Consensus Estimate of $1.02. Also, the bottom line increased 14.5% on a year-over-year basis. Also, quarterly revenues of $521.3 million beat the Zacks Consensus Estimate of $499.4 million and increased 10.6% on a year-over-year basis.
This year-over-year uptick can be primarily attributed to 7.3% increase in revenues from the rental of flight equipment. Notably, rental of flight equipment revenues contributed 95.5% to the top line.
Air Lease Corporation Price, Consensus and EPS Surprise
Air Lease Corporation price-consensus-eps-surprise-chart | Air Lease Corporation Quote
Other Statistics
Revenues from aircraft sales, trading activity and other sources surged more than 100% to $23.5 million in the reported quarter. Total expenses rose 8.5% to $337.4 million due to higher interest expenses, depreciation of flight equipment costs as well as other factors.
As of Jun 30, Air Lease owned 301 aircraft in the operating lease portfolio, with a net book value of $19.1 billion. Total fleet size at the end of first quarter was 800 (including owned fleet of 301) compared with 858 (including owned fleet of 292) at 2019-end.
Thanks to the COVID-19 outbreak, the company reduced capital expenditures in aircraft investments and is expecting to minimize aircraft sales for the rest of 2020.
In order to counter the COVID-19 impact in the financial market, Air Lease has an impressive liquid position of $6.9 billion.
Liquidity
Air Lease, carrying a Zacks Rank #3 (Hold), exited the quarter with cash and cash equivalents of $926.4 million compared with $317.4 million at 2019 end. As of June end, the company had $14.6 billion of debt financing, net of discount and issuance costs compared with $13.6 billion as of Dec 31, 2019.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Air Lease’s board cleared a quarterly cash dividend of 15 cents per share (annualized 60 cents). The amount will be paid on Oct 9, 2020 to shareholders on record as on Sep 11.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ second-quarter results.
Canadian National’s CNI second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) were in line with the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year. Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and fell 21.8% year over year.
J.B. Hunt Transport JBHT reported second-quarter 2020 earnings of $1.14 per share that surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million beat the Zacks Consensus Estimate of $2,060.9 million.
Kansas City Southern’s KSU second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. Total revenues of $547.9 million lagged the consensus mark of $550.2 million.
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