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

AerSale (NASDAQ:ASLE) issued its quarterly earnings results on Thursday. The company reported ($0.09) earnings per share (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 return on equity of 3.10% and a net margin of 3.06%.

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 Stock Performance

Shares of NASDAQ:ASLE traded down $0.14 during midday trading on Thursday, reaching $6.30. The company’s stock had a trading volume of 528,079 shares, compared to its average volume of 317,385. 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 fifty day moving average of $6.31 and a 200 day moving average of $6.67. AerSale has a twelve month low of $5.56 and a twelve month high of $9.12. The firm has a market capitalization of $297.69 million, a PE ratio of 28.64 and a beta of 0.28.

Analysts Set New Price Targets

ASLE has been the subject of a number of analyst reports. B. Riley Financial started coverage on shares of AerSale in a report on Monday, June 29th. They issued a “neutral” rating and a $7.50 price target for the company. Zacks Research upgraded shares of AerSale to a “hold” rating in a report on Wednesday, July 1st. Finally, Weiss Ratings cut AerSale from a “hold (c-)” rating to a “sell (d)” rating in a research note on Friday, May 15th. Four equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, AerSale presently has a consensus rating of “Reduce” and an average target price of $7.17.

Insider Activity at AerSale

In other news, insider Frederick Craig Wright sold 4,182 shares of the company’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $6.34, for a total value of $26,513.88. Following the sale, the insider owned 213,531 shares in the company, valued at $1,353,786.54. This represents a 1.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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 that occurred on Tuesday, June 9th. The shares were sold at an average price of $6.34, for a total transaction of $47,492.94. Following 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 ownership of the stock. 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. Insiders sold 21,316 shares of company stock worth $135,160 over the last three months. Company insiders own 20.10% of the company’s stock.

Hedge Funds Weigh In On AerSale

Several hedge funds and other institutional investors have recently made changes to their positions in ASLE. HRT Financial LP acquired a new stake in shares of AerSale in the fourth quarter worth approximately $75,000. 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 buying an additional 3,071 shares during the last quarter. Cerity Partners LLC purchased a new position in shares of AerSale in the fourth quarter worth about $83,000. Quadrature Capital Ltd acquired a new position in AerSale during the fourth quarter worth about $102,000. Finally, Zacks Investment Management acquired a new stake in AerSale in the 4th quarter valued at about $118,000. Hedge funds and other institutional investors own 69.48% of the company’s stock.

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.