AerSale (NASDAQ:ASLE) Posts Earnings Results, Misses Expectations By $0.15 EPS

AerSale (NASDAQ:ASLE) announced its quarterly earnings data 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 the consensus estimate 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

NASDAQ:ASLE opened at $5.90 on Friday. The stock has a market capitalization of $278.77 million, a PE ratio of -73.75 and a beta of 0.28. AerSale has a 1-year low of $5.56 and a 1-year high of $9.12. The firm has a fifty day simple moving average of $6.29 and a 200 day simple moving average of $6.66. The company has a current ratio of 3.74, a quick ratio of 0.89 and a debt-to-equity ratio of 0.01.

Insiders Place Their Bets

In other AerSale news, insider Martin Garmendia sold 6,094 shares of the company’s stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $6.34, for a total transaction of $38,635.96. Following the sale, the insider directly owned 183,377 shares of the company’s stock, valued at approximately $1,162,610.18. This represents a 3.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 AerSale stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $6.34, for a total transaction of $47,492.94. Following the completion of the transaction, the insider directly owned 162,405 shares of the company’s stock, valued at approximately $1,029,647.70. This trade represents a 4.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last three months, insiders have sold 21,316 shares of company stock valued at $135,160. 20.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AerSale

Institutional investors have recently bought and sold shares of the business. BNP Paribas Financial Markets raised its position in shares of AerSale by 45.6% in the third quarter. BNP Paribas Financial Markets now owns 9,813 shares of the company’s stock valued at $80,000 after purchasing an additional 3,071 shares during the period. HRT Financial LP bought a new position in AerSale in the 4th quarter valued at about $75,000. Cerity Partners LLC acquired a new stake in AerSale during the fourth quarter worth approximately $83,000. Quadrature Capital Ltd bought a new stake in shares of AerSale during the fourth quarter worth approximately $102,000. Finally, Zacks Investment Management acquired a new position in shares of AerSale in the fourth quarter valued at approximately $118,000. Institutional investors and hedge funds own 69.48% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on ASLE shares. Zacks Research upgraded shares of AerSale to a “hold” rating in a research note on Wednesday, July 1st. B. Riley Financial started 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. Finally, Weiss Ratings lowered AerSale from a “hold (c-)” rating to a “sell (d)” rating in a report on Friday, May 15th. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average price target of $6.75.

About AerSale

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.