Air Lease Earnings: Here’s Why Investors are Selling Shares Now

Air Lease Corp (NYSE:AL) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 10.07%.

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Air Lease Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 46.15% to $0.38 in the quarter versus EPS of $0.26 in the year-earlier quarter.

Revenue: Rose 44.85% to $192 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Air Lease Corp reported adjusted EPS income of $0.38 per share. By that measure, the company missed the mean analyst estimate of $0.38. It missed the average revenue estimate of $195.98 million.

Quoting Management: “During the first quarter we continued to execute our strategic plan for future growth, increasing our fully diluted EPS by 46% compared to Q1 of 2012. Although macro-economic indicators remain mixed, we continue to see strong global growth of passenger traffic led by the emerging markets, which drives demand for new aircraft. We see that strength continuing for the foreseeable future. Accordingly, we increased our order positions to meet that demand. Financing markets remain open and investors and institutions have been very receptive to ALC’s strong credit metrics. Our recent corporate credit rating of A- from Kroll further broadens our access to attractively priced capital,” said Steven F. Udvar-Házy, Chairman and Chief Executive Officer of Air Lease Corporation.

Key Stats (on next page)…

Revenue increased 1% from $190.1 million in the previous quarter. EPS decreased 0% from $0.38 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.43 to a profit $0.42. For the current year, the average estimate has moved up from a profit of $1.75 to a profit of $1.78 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)