Shares of Air Lease Corporation (AL) fell sharply on Thursday, plunging 5.43% following the aircraft leasing company's third-quarter earnings report. While Air Lease beat analysts' earnings estimates, the results revealed intensifying cost pressures that squeezed profit margins.
The company reported adjusted earnings per share of $0.82 for the quarter ended September 30th, down from $1.10 in the year-ago period but surpassing the consensus estimate of $0.79. Revenue grew 4.7% year-over-year to $690.16 million, topping expectations of $676.82 million.
However, escalating costs substantially impacted Air Lease's bottom line during the quarter. Interest expense spiked by $42 million compared to the prior year, driven by a 54 basis point increase in the company's composite cost of funds to 4.21%. The profit margin contracted, weighing on earnings despite solid top-line growth.
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