AerSale (NASDAQ:ASLE – Get Free Report) announced its quarterly earnings data on Thursday. The company reported ($0.02) EPS for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.13), FiscalAI reports. AerSale had a negative return on equity of 0.27% and a negative net margin of 1.23%. The business had revenue of $91.56 million during the quarter, compared to the consensus estimate of $91.22 million.
Here are the key takeaways from AerSale’s conference call:
- Revenue grew 29% to $91.6 million, but adjusted EBITDA fell to $8.6 million from $9.5 million and gross margin contracted to 22.5% from 30.2%, primarily due to weaker TechOps margins.
- Management expects a significantly stronger fourth quarter, citing the expected close of the $35 million Boeing 737 sale and other flight-equipment transactions, which it says should recover invested capital and improve liquidity.
- MRO demand and awarded work are building, including cargo-carrier heavy-check contracts and new landing-gear agreements; management expects the expanded operations to become profitable EBITDA contributors in 2027 as throughput and cost absorption improve.
- The company reported a $15 million net loss, including a $13.4 million non-cash goodwill impairment, and ended the quarter with only $23.1 million of available liquidity after year-to-date operating cash use of $42.7 million.
- Engineered Solutions revenue rose to $8.4 million from $2.2 million, driven by AerSafe kit demand, while leasing and USM revenue also increased year over year.
AerSale Trading Down 4.2%
Shares of AerSale stock traded down $0.20 on Friday, hitting $4.62. 321,418 shares of the company traded hands, compared to its average volume of 364,283. The company has a market cap of $220.31 million, a PE ratio of -57.76 and a beta of 0.23. The stock’s 50 day moving average price is $5.13 and its 200-day moving average price is $6.21. The company has a current ratio of 3.27, a quick ratio of 0.76 and a debt-to-equity ratio of 0.01. AerSale has a 52 week low of $4.54 and a 52 week high of $7.93.
Key AerSale News
Here are the key news stories impacting AerSale this week:
- Positive Sentiment: Revenue rose 29% year over year to $91.6 million, slightly exceeding estimates of $91.2 million. Coverage highlighted leasing and MRO activity as contributors to the increase. AerSale Q3 results
- Neutral Sentiment: The reported $15.0 million net loss included a $13.4 million non-cash goodwill impairment. AerSale said it is focused on monetizing assets, scaling MRO operations and expanding recurring revenue, but execution will determine whether these efforts improve results. Q3 earnings call highlights
- Negative Sentiment: Adjusted results weakened: AerSale posted an adjusted net loss of $1.1 million, versus adjusted net income of $1.5 million a year earlier, and adjusted EBITDA fell to $8.6 million from $9.5 million. EPS of negative $0.02 also missed the consensus estimate of positive $0.11, despite the revenue beat. Q3 loss and revenue results
Analysts Set New Price Targets
A number of equities research analysts have issued reports on the stock. Wall Street Zen downgraded shares of AerSale from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Royal Bank Of Canada decreased their price target on shares of AerSale from $8.00 to $7.00 and set a “sector perform” rating for the company in a research note on Monday, August 10th. Zacks Research upgraded AerSale from a “strong sell” rating to a “hold” rating in a research report on Friday, October 9th. Weiss Ratings reiterated a “sell (d)” rating on shares of AerSale in a report on Wednesday, August 12th. Finally, B. Riley Financial cut their price target on shares of AerSale from $7.50 to $6.00 and set a “neutral” rating on the stock in a report on Wednesday, October 28th. Four equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average price target of $6.33.
View Our Latest Report on ASLE
About AerSale
AerSale Corporation (NASDAQ:ASLE) is an aviation aftermarket company that provides products and services to commercial airlines, aircraft leasing companies, original equipment manufacturers, government agencies and other aviation customers. The company focuses primarily on commercial aircraft and engines, including aircraft sales and leasing support, component sourcing, and related asset management services.
AerSale also operates maintenance, repair and overhaul capabilities for aircraft, engines and components.
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