AerSale (NASDAQ:ASLE) Announces Quarterly Earnings Results

AerSale (NASDAQ:ASLE) issued its quarterly earnings results on Thursday. The company reported ($0.02) earnings per share for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.13), FiscalAI reports. AerSale had a negative return on equity of 0.27% and a negative net margin of 1.23%. The business had revenue of $91.56 million for the quarter, compared to analysts’ expectations of $91.22 million.

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

• Revenue grew 29% to $91.6 million, but adjusted EBITDA fell to $8.6 million from $9.5 million and gross margin contracted to 22.5% from 30.2%, primarily due to weaker TechOps margins.
• Management expects a significantly stronger fourth quarter, citing the expected close of the $35 million Boeing 737 sale and other flight-equipment transactions, which it says should recover invested capital and improve liquidity.
• MRO demand and awarded work are building, including cargo-carrier heavy-check contracts and new landing-gear agreements; management expects the expanded operations to become profitable EBITDA contributors in 2027 as throughput and cost absorption improve.
• The company reported a $15 million net loss, including a $13.4 million non-cash goodwill impairment, and ended the quarter with only $23.1 million of available liquidity after year-to-date operating cash use of $42.7 million.
• Engineered Solutions revenue rose to $8.4 million from $2.2 million, driven by AerSafe kit demand, while leasing and USM revenue also increased year over year.

AerSale Trading Down 3.0%

ASLE stock traded down $0.15 on Thursday, hitting $4.82. 471,692 shares of the company were exchanged, compared to its average volume of 409,709. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.27 and a quick ratio of 0.76. The stock has a market capitalization of $230.04 million, a price-to-earnings ratio of -60.25 and a beta of 0.23. AerSale has a twelve month low of $4.54 and a twelve month high of $7.93. The business’s fifty day moving average is $5.13 and its two-hundred day moving average is $6.21.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on ASLE. Royal Bank Of Canada lowered their price objective on AerSale from $8.00 to $7.00 and set a “sector perform” rating for the company in a research report on Monday, August 10th. B. Riley Financial reduced their target price on AerSale from $7.50 to $6.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 28th. Wall Street Zen downgraded AerSale from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Zacks Research raised AerSale from a “strong sell” rating to a “hold” rating in a research note on Friday, October 9th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of AerSale in a research note on Wednesday, August 12th. Four analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, AerSale currently has a consensus rating of “Reduce” and a consensus target price of $6.33.

About AerSale

AerSale Corporation (NASDAQ:ASLE) is an aviation aftermarket company that provides products and services to commercial airlines, aircraft leasing companies, original equipment manufacturers, government agencies and other aviation customers. The company focuses primarily on commercial aircraft and engines, including aircraft sales and leasing support, component sourcing, and related asset management services.

AerSale also operates maintenance, repair and overhaul capabilities for aircraft, engines and components.