The 10-second takeaway
For the quarter ended March 31 (Q1), AerCap Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped.
Margins improved across the board.
AerCap Holdings reported revenue of $257.9 million. The eight analysts polled by S&P Capital IQ expected revenue of $263.3 million on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $359.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.48. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. GAAP EPS of $0.46 for Q1 were 4.2% lower than the prior-year quarter's $0.48 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 91.9%, 4,340 basis points better than the prior-year quarter. Operating margin was 51.0%, 1,100 basis points better than the prior-year quarter. Net margin was 25.2%, 520 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $260.5 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $1.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 218 members out of 234 rating the stock outperform, and 16 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give AerCap Holdings a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AerCap Holdings is outperform, with an average price target of $16.53.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.