Air Lease to Report Q4 Earnings: What's in Store for the Stock?

Zacks
12 Feb

Air Lease Corporation (AL) is scheduled to report fourth-quarter 2024 results on Feb. 13, after market close.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for AL’s fourth-quarter 2024 earnings has remained stable at $1.17 in the past 90 days. The consensus mark implies a 38.1% decline from the year-ago reported figure.

Air Lease’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 10.26%. However, the company missed the Zacks Consensus Estimate in the remaining two quarters.

Let’s see how things have shaped up for Air Lease this earnings season.

Q4 Expectations

The Zacks Consensus Estimate for Air Lease’s fourth-quarter 2024 revenues is pegged at $710.74 million, indicating a decline of 0.8% year over year.

The Zacks Consensus Estimate for rental of flight equipment fourth-quarter revenues is pegged at $662 million, indicating 2.7% growth from the year-ago reported figure. The uptick is likely to have been driven by growth in AL’s fleet. The Zacks Consensus Estimate for aircraft sales, trading activity and other sources’ fourth-quarter revenues is pegged at $48 million, indicating a 33.3% decline from the year-ago reported figure.

On the flip side, production delays at Boeing have been hurting the fleet-related plans of AL. Rising operating expenses due to higher selling, general and administrative expenses, interest expenses and depreciation of flight equipment costs might have acted as headwinds for AL's bottom-line growth. Higher interest expense due to an increase in the composite cost of funds remains another concern. 

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Air Lease this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Air Lease has an Earnings ESP of 0.00% and a Zacks Rank #3.

Highlights of AL’s Q3 Earnings

Air Lease reported solid third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Quarterly earnings per share of $1.25 beat the Zacks Consensus Estimate of $1.22.

Total revenues of $690.2 million lagged the Zacks Consensus Estimate of $681.7 million and grew 4.7% year over year.

Stocks to Consider

Golar LNG Limited GLNG has an Earnings ESP of +11.58% and a Zacks Rank #1 at present. GLNG is set to release fourth-quarter 2025 results on Feb. 27. You can see the complete list of today’s Zacks #1 Rank stocks here.

GLNG has an encouraging earnings surprise history. It surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average beat is 30.2%.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. VLRS , popularly known as Volaris, currently has an Earnings ESP of +4.27% and carries a Zacks Rank #3. Upbeat air travel demand is aiding the company. VLRS is slated to report fourth-quarter 2024 results on Feb. 24.

VLRS has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 159.54%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Air Lease Corporation (AL) : Free Stock Analysis Report

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) : Free Stock Analysis Report

Golar LNG Limited (GLNG) : Free Stock Analysis Report

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