AerSale (NASDAQ:ASLE) Releases Earnings Results, Misses Estimates By $0.13 EPS

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

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 Stock Performance

AerSale stock traded down $0.15 during mid-day trading on Thursday, hitting $4.82. 471,692 shares of the company’s stock traded hands, compared to its average volume of 409,709. The firm has a 50 day simple moving average of $5.13 and a two-hundred day simple moving average of $6.21. AerSale has a fifty-two week low of $4.54 and a fifty-two week high of $7.93. The stock has a market cap of $230.06 million, a price-to-earnings ratio of -60.25 and a beta of 0.23. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.27 and a quick ratio of 0.76.

Analyst Upgrades and Downgrades

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

AerSale Company Profile

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.