Willis Lease Finance (NASDAQ:WLFC) Issues Earnings Results

Willis Lease Finance (NASDAQ:WLFC) posted its quarterly earnings data on Tuesday. The transportation company reported $1.52 earnings per share for the quarter, missing the consensus estimate of $3.38 by ($1.86), FiscalAI reports. The firm had revenue of $193.62 million during the quarter, compared to analyst estimates of $149.00 million. Willis Lease Finance had a net margin of 15.38% and a return on equity of 18.38%.

Here are the key takeaways from Willis Lease Finance’s conference call:

• Record financial performance: Q4 revenue of $193.6 million (+27% YoY) and full-year revenue of $730.2 million (+28%) produced record earnings before tax of $160.6 million and adjusted EBITDA of $459.1 million, underscoring strong cash generation.
• Portfolio strength and hidden value: Lease portfolio utilization averaged 85% (up from 83%) with total portfolio ~ $3 billion and a maintenance-adjusted market value estimated at roughly $700 million above book value, suggesting significant unrecognized asset value.
• Willis Aviation Capital ramps up: Two new funds (a $600 million Liberty Mutual partnership and a $1 billion+ Blackstone vehicle) are ready to deploy, enabling fee income, carried interest, off?balance?sheet growth and the ability to pursue larger transactions.
• Rising costs and impairments may pressure margins: G&A rose to $194.7 million (including higher share?based comp), equipment write?downs increased to $32.9 million, net finance costs rose to $135.1 million and total debt grew to $2.7 billion.
• Services and MRO progress support vertical integration: WASI, WERC US/UK and WASL expanded capabilities (including a core module restoration and full WASL C?check/A320 certifications), driving intercompany revenue and faster turn times for engines and aircraft.

Willis Lease Finance Stock Performance

NASDAQ:WLFC opened at $181.51 on Thursday. The company has a quick ratio of 1.50, a current ratio of 1.88 and a debt-to-equity ratio of 3.44. Willis Lease Finance has a fifty-two week low of $114.01 and a fifty-two week high of $207.05. The firm’s fifty day simple moving average is $182.72 and its 200-day simple moving average is $151.33. The stock has a market cap of $1.24 billion, a PE ratio of 11.78 and a beta of 0.75.

Willis Lease Finance Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, February 20th. Shareholders of record on Wednesday, February 11th were given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Wednesday, February 11th. Willis Lease Finance’s payout ratio is presently 9.58%.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a “hold (c+)” rating on shares of Willis Lease Finance in a research report on Monday, December 29th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat, Willis Lease Finance has an average rating of “Hold”.

Insider Buying and Selling

In other Willis Lease Finance news, CEO Austin Chandler Willis sold 3,400 shares of the stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $185.74, for a total value of $631,516.00. Following the completion of the transaction, the chief executive officer directly owned 184,746 shares of the company’s stock, valued at approximately $34,314,722.04. This trade represents a 1.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 53.85% of the company’s stock.

Institutional Investors Weigh In On Willis Lease Finance

Several institutional investors have recently modified their holdings of the company. Empowered Funds LLC raised its holdings in Willis Lease Finance by 0.8% during the fourth quarter. Empowered Funds LLC now owns 27,889 shares of the transportation company’s stock worth $3,783,000 after purchasing an additional 208 shares during the last quarter. New York State Common Retirement Fund raised its stake in shares of Willis Lease Finance by 64.7% during the 4th quarter. New York State Common Retirement Fund now owns 19,605 shares of the transportation company’s stock worth $2,659,000 after buying an additional 7,700 shares during the last quarter. Royal Bank of Canada grew its stake in Willis Lease Finance by 1.8% in the 1st quarter. Royal Bank of Canada now owns 14,452 shares of the transportation company’s stock valued at $2,283,000 after acquiring an additional 255 shares during the last quarter. BNP Paribas Financial Markets increased its holdings in Willis Lease Finance by 5,668.1% during the 2nd quarter. BNP Paribas Financial Markets now owns 12,459 shares of the transportation company’s stock valued at $1,779,000 after acquiring an additional 12,243 shares in the last quarter. Finally, Qube Research & Technologies Ltd acquired a new position in Willis Lease Finance during the second quarter worth about $1,756,000. Hedge funds and other institutional investors own 93.70% of the company’s stock.

Willis Lease Finance Company Profile

Willis Lease Finance Corporation (NASDAQ: WLFC) is an independent global provider of aircraft engine leasing, trading and aftermarket services. Founded in 1991 and headquartered in the United States, the company specializes in offering short- and long-term operating leases for jet engines and auxiliary power units. Through its broad engine portfolio, Willis Lease Finance supports a wide range of commercial aircraft across various operators, including major airlines, regional carriers and other leasing companies.

In addition to leasing solutions, Willis Lease Finance offers comprehensive engine trading and asset management services.