Aircastle LTD Earnings: Here’s Why Investors are Not Excited Now

Aircastle LTD (NYSE:AYR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.2%.

Aircastle LTD Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 33.33% to $0.48 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Decreased 1.03% to $170.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Aircastle LTD reported adjusted EPS income of $0.48 per share. By that measure, the company beat the mean analyst estimate of $0.34. It beat the average revenue estimate of $168.51 million.

Quoting Management: Ron Wainshal, Aircastle’s CEO, stated: “Aircastle’s second quarter financial results were very good, reflecting strong portfolio performance and effective asset management. I’m particularly encouraged by our acquisition activity, where we have been able to find attractive investment values consistent with our disciplined approach and return targets. In that regard, the majority of our recent investments have been for new wide-body aircraft on long-term leases with high quality lessees, and this is gradually transforming and enhancing the mix of our portfolio. We’re in an excellent position to capitalize on our team’s transaction origination capabilities with the new capital we’ve sourced.” Mr. Wainshal added, “We’re extremely pleased to welcome Marubeni as an important new strategic shareholder. Marubeni brings a long-term, globally minded perspective to our business and we believe there are exciting business opportunities for us as we work together.”

Key Stats (on next page)…

Revenue decreased 3.29% from $176.19 million in the previous quarter. EPS increased 20% from $0.40 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 $0.45 to a profit $0.37. For the current year, the average estimate has moved down from a profit of $1.66 to a profit of $1.51 over the last ninety days.

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