AerCap stock rises on stellar Q1 results

© Reuters.

DUBLIN - AerCap Holdings N.V. (NYSE: AER) announced a robust financial performance for the first quarter of 2024, surpassing analyst expectations with an adjusted earnings per share (EPS) of $3.29, which was $0.88 higher than the consensus estimate of $2.41. AER shares were trading up 1.8% premarket following the announcement.

The company's revenue also exceeded forecasts, coming in at $2.02 billion against the anticipated $1.93 billion. The results represent an 8% increase in total revenues and other income compared to the same period last year.

Aengus Kelly, CEO of AerCap, attributed the strong quarter to the company's continued excellent performance and the sustained demand for its aviation assets. The company reported an adjusted net income of $658 million and generated $1.4 billion in operating cash flow. In light of these results, AerCap has raised its full-year 2024 adjusted EPS guidance to approximately $9.20.

The company's lease revenue saw a 2% year-over-year (YoY) increase, with basic lease rents rising 3% to $1.586 billion. However, maintenance rents and other receipts experienced a slight 4% decline. The net gain on the sale of assets for the first quarter was a notable $160 million, a substantial 60% increase from the previous year, primarily due to the volume and composition of asset sales.

AerCap's financial position has strengthened, with the book value per share as of March 31, 2024, reaching $87.47, marking a significant 27% increase from the previous year. The company also returned $336 million to shareholders through the repurchase of shares during the quarter.

Despite the positive earnings and revenue beat, AerCap's stock saw a modest increase of 1% following the announcement, indicating a tempered but positive market response. This movement reflects investor sentiment that aligns with the company's strong financial results and guidance raise.

The company's effective tax rate was slightly higher at 14.3% for the first quarter of 2024, compared to 14.0% for the same period in 2023. AerCap's capital structure remains solid, with an adjusted debt/equity ratio of 2.40 to 1 as of March 31, 2024.

Looking ahead, AerCap's management remains confident in the company's trajectory. CEO Aengus Kelly stated, "Our business is performing very well, and the demand for our aviation assets remains robust."

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