The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AerCap Holdings whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share grew. GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins shrank, net margins shrank.
AerCap Holdings booked revenue of $192.2 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $245.4 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $167.4 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 $0.57. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. Non-GAAP EPS of $0.57 for Q4 were 1.8% higher than the prior-year quarter's $0.56 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.09 for Q4 were 83% lower than the prior-year quarter's $0.54 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 92.7%, 240 basis points better than the prior-year quarter. Operating margin was 38.1%, 4,120 basis points worse than the prior-year quarter. Net margin was 5.8%, 3,980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $240.3 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is $2.11.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 218 members out of 235 rating the stock outperform, and 17 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 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 $16.97.
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