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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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. The Motley Fool has no positions in the stocks mentioned above. 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.