AerSale (NASDAQ:ASLE) Issues Earnings Results, Misses Estimates By $0.15 EPS

AerSale (NASDAQ:ASLE) posted its quarterly earnings results on Thursday. The company reported ($0.09) EPS for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.15), FiscalAI reports. The business had revenue of $70.93 million during the quarter, compared to analysts’ expectations of $81.24 million. AerSale had a negative return on equity of 0.27% and a negative net margin of 1.23%.

Here are the key takeaways from AerSale’s conference call:

• Second-quarter results declined sharply: revenue fell to $70.9 million from $107.4 million and adjusted EBITDA dropped to $2.2 million from $18.3 million, primarily because there were no flight equipment sales versus $33.4 million of such sales a year earlier.
• Year-to-date operating cash flow was negative $33.5 million, while available liquidity stood at approximately $34 million, including only $2.2 million in cash; management attributed the cash use to inventory and make-ready investments ahead of asset sales and leases.
• Management expects a meaningfully stronger second half as several engines exit repair, a $35 million 737 sale to the U.S. Marshals Service and other engine sales close, and the remaining two 757 converted freighters are monetized or placed on lease.
• Recurring businesses continued to expand, with leasing revenue up roughly 50% year over year to $12.4 million and Tech Ops revenue up 8.7% to $33.8 million; the company also reported improving efficiency at its Millington and LandingGear facilities.
• AerSale is reallocating some USM material from piece-part sales into complete engines and other flight equipment, arguing this can produce higher margins and faster capital recovery, although it reduces near-term USM revenue and increases capital requirements.

AerSale Price Performance

AerSale stock traded down $0.40 during mid-day trading on Friday, reaching $5.90. 1,087,386 shares of the company’s stock traded hands, compared to its average volume of 306,739. AerSale has a 12-month low of $5.56 and a 12-month high of $9.12. The company has a quick ratio of 0.89, a current ratio of 3.74 and a debt-to-equity ratio of 0.01. The stock has a 50 day moving average of $6.29 and a two-hundred day moving average of $6.66. The company has a market cap of $278.77 million, a price-to-earnings ratio of -73.75 and a beta of 0.28.

Insider Transactions at AerSale

In other AerSale news, insider Frederick Craig Wright sold 4,182 shares of the business’s stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $6.34, for a total transaction of $26,513.88. Following the sale, the insider directly owned 213,531 shares of the company’s stock, valued at $1,353,786.54. The trade was a 1.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Gary Edmund Jones sold 7,491 shares of the firm’s stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $6.34, for a total value of $47,492.94. Following the completion of the sale, the insider directly owned 162,405 shares of the company’s stock, valued at $1,029,647.70. The trade was a 4.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 21,316 shares of company stock worth $135,160 in the last three months. Insiders own 20.10% of the company’s stock.

Institutional Trading of AerSale

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its position in AerSale by 29.3% during the third quarter. Vanguard Group Inc. now owns 1,965,792 shares of the company’s stock valued at $16,100,000 after acquiring an additional 444,954 shares during the last quarter. Marshall Wace LLP boosted its stake in shares of AerSale by 277.4% during the 3rd quarter. Marshall Wace LLP now owns 1,509,517 shares of the company’s stock worth $12,363,000 after purchasing an additional 1,109,550 shares during the period. Dimensional Fund Advisors LP grew its holdings in AerSale by 6.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,287,056 shares of the company’s stock valued at $9,151,000 after purchasing an additional 83,060 shares during the last quarter. Millennium Management LLC grew its holdings in AerSale by 46.2% during the 4th quarter. Millennium Management LLC now owns 1,057,473 shares of the company’s stock valued at $7,519,000 after purchasing an additional 334,203 shares during the last quarter. Finally, Earnest Partners LLC purchased a new stake in AerSale in the 4th quarter worth about $5,110,000. 69.48% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research firms have commented on ASLE. Zacks Research raised shares of AerSale to a “hold” rating in a report on Wednesday, July 1st. Weiss Ratings downgraded AerSale from a “hold (c-)” rating to a “sell (d)” rating in a research report on Friday, May 15th. Finally, B. Riley Financial initiated coverage on AerSale in a research report on Monday, June 29th. They issued a “neutral” rating and a $7.50 target price on the stock. Three investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $6.75.

AerSale Company Profile

AerSale Inc is an integrated aftermarket solutions provider serving the global commercial, defense and business aviation markets. The company specializes in aircraft and engine maintenance, repair and overhaul (MRO), asset leasing and aviation parts distribution. Its key offerings include airframe heavy maintenance, engine tear?down and component overhaul, used serviceable material programs and end?of?life aircraft disassembly. Through these services, AerSale supports operators seeking to optimize fleet availability, extend asset life cycles and reduce maintenance costs.

Founded in 2009 and headquartered in Coral Gables, Florida, AerSale has grown through strategic acquisitions and organic expansion.