AerCap Holdings (AER) Tops Q2 EPS by 23c, Revenues In-Line

AerCap Holdings (NYSE: AER) reported Q2 EPS of $1.70, $0.23 better than the analyst estimate of $1.47. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.19 billion.

Highlights

• 90 aircraft transactions executed in the second quarter of 2018, including 17 widebody transactions.
• 20 aircraft purchased for $1.5 billion.
• 6.6 years average age of owned fleet.
• 7.1 years average remaining lease term.
• 98.9% fleet utilization rate for the second quarter of 2018.
• Closed on $2.7 billion of debt financing.
• $11.7 billion of available liquidity and adjusted debt/equity ratio of 2.8 to 1.
• Book value per share of $59.25, an increase of 12% since June 30, 2017.
• Repurchased 1.9 million shares in the second quarter of 2018 for $101 million.

Aengus Kelly, CEO of AerCap, commented: “I am pleased to report another quarter of strong operating and financial results, with earnings per share of $1.70 and net income of $254.2 million. The AerCap platform remained active in the quarter, completing 90 aircraft transactions, including 17 widebody transactions. We took delivery of 20 aircraft and expect to take delivery of over 200 new technology aircraft through the end of 2020. We continue to see strong global demand from our airline customers and have access to $11.7 billion of liquidity to meet our strategic objectives.”

Second Quarter 2018 Financial Results

• Net income of $254.2 million, compared with $282.9 million for the same period in 2017. Diluted earnings per share of $1.70, compared with $1.67 for the same period in 2017.
• The decrease in net income was primarily driven by lower other income as well as a decrease in net gain on sale of assets. Other income for the second quarter of 2017 included contractual payments related to a lease termination agreement.
• The increase in diluted earnings per share was primarily driven by the repurchase of 24.9 million shares from April 2017 through June 2018.

For earnings history and earnings-related data on AerCap Holdings (AER) click here.

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