The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AerCap Holdings whiffed on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share expanded.
Margins grew across the board.
AerCap Holdings recorded revenue of $276.5 million. The eight analysts polled by S&P Capital IQ expected a top line of $310.5 million on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $404.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.56. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.47 per share on the same basis. GAAP EPS of $0.55 for Q4 were 3.8% higher than the prior-year quarter's $0.53 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 93.4%, 5,150 basis points better than the prior-year quarter. Operating margin was 52.4%, 1,890 basis points better than the prior-year quarter. Net margin was 27.6%, 970 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $295.7 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.30 billion. The average EPS estimate is $2.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 225 members out of 242 rating the stock outperform, and 17 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give AerCap Holdings a green thumbs-up, and two 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 $16.13.
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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.