AerCap beats the Street, share price heads for the skies
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AerCap beats the Street, share price heads for the skies

AerCap Holdings, the world’s largest independent aircraft leasing company, reported earnings this week that cheered investors and sent its share price soaring. The company, which provides more-than 200 clients internationally with commercial planes to operate private air travel networks, made headway on its top- and bottom-lines, and continued the renovation of its fleet, which now counts as many as 50% of its air crafts as “new technology”. That’s important to the company’s long-term competitiveness, as on-going advances in energy efficiency mean modern planes are cleaner, greener, and cheaper to run.

AerCap’s share price rose on the back of strong earnings: +31%, year to date

03 05 aercap

Source: Yahoo Finance

Here’s the bottom line: AerCap said that net income for the first quarter of 2019 came in at $234.2 million. That translates into diluted earnings per share of $1.68, handily beating Wall Street’s predictions for earnings of $1.61 per share. These strong results were driven by consistent demand worldwide, as AerCap saw 99.2% fleet utilisation over the three months just gone.

Perhaps more important than the quarter’s financials (which continued a streak of outperformance) was what AerCap has on its books. Looking to the future, the company has more-than $40 billion contracted lease revenues in its pipeline, with an average current lease expiration set for the third quarter of 2026.

In a statement, AerCap’s CEO, Aengus Kelly, said: “I am pleased to announce another strong quarter for AerCap, with earnings per share of $1.68 and net income of $234.2 million. The foundation of AerCap’s success is our longstanding, deeply ingrained culture of action and discipline. Coupled with our scale and informational advantages, these enable us to produce superior economic results consistently, quarter after quarter and year after year.”

Disclosure

Dominion holds AerCap Holdings in its Global Trends Managed Fund.


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