Analysts Lower Expectations for Air Lease After Latest Results

Generado por agente de IAWesley Park
sábado, 15 de febrero de 2025, 9:20 am ET1 min de lectura
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Air Lease Corporation (NYSE:AL) has seen a shift in analysts' expectations following the release of its latest financial results. The company reported a 1.8% increase in revenue to US$2.73 billion for the full year 2024, but net income attributable to common stockholders fell by 35% to US$372.1 million. Profit margin also declined from 21% in 2023 to 14% in 2024. Earnings per share (EPS) dropped from US$5.16 to US$3.34 during the same period.



Analysts had expected revenue to be in line with estimates, and earnings per share (EPS) surpassed estimates by 2.7%. However, the primary driver behind last 12 months' revenue was the Asia/Pacific segment, contributing a total revenue of US$1.00 billion (37% of total revenue). The most substantial expense, totaling US$998.0m, was related to non-operating costs, indicating that a significant portion of the company's costs is related to non-core activities.

Looking ahead, revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Trade Distributors industry in the US. However, the company's shares are up 7.4% from a week ago, indicating that investors remain optimistic about the company's prospects despite the decline in profit margin and EPS.



Investors should be aware of the risks associated with Air Lease, including the risks related to the Asia/Pacific segment, non-operating costs, interest expenses, production delays at Boeing, and the aircraft sales pipeline. To address these risks, investors should diversify their portfolio, monitor Air Lease's financial statements and earnings reports, stay informed about industry trends, maintain a long-term perspective, and consider seeking advice from financial advisors or investment professionals.

In conclusion, while Air Lease's latest results have led analysts to lower their expectations, the company's revenue growth and optimistic investor sentiment suggest that there is still potential for the stock to perform well in the long run. However, investors should remain vigilant and consider the risks associated with the company when making investment decisions.

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