The 10-second takeaway
For the quarter ended Sep. 30 (Q3), AerCap Holdings beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share grew.
Margins grew across the board.
AerCap Holdings tallied revenue of $269.5 million. The eight analysts polled by S&P Capital IQ foresaw sales of $262.3 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $337.8 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 anticipated $0.48 per share. GAAP EPS were $0.45 for Q3 against -$0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 90.8%, 4,060 basis points better than the prior-year quarter. Operating margin was 47.8%, 710 basis points better than the prior-year quarter. Net margin was 21.5%, 2,360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $269.6 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $1.89.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 219 members out of 236 rating the stock outperform, and 17 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give AerCap Holdings a green thumbs-up, and four 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 $16.50.
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