Air Transport Services (ATSG) Second Quarter Profit and Revenue

Air Transport Services GroupATSG’s second quarter 2021 ATSG profit (excluding 39 cents of one-time items) of 35 cents per share topped Zacks’ consensus estimate of 26 cents. Net income has declined year over year.

Total revenue of $ 409.9 million topped Zacks’ consensus estimate of $ 386.6 million and was also up 8.5% year-over-year, thanks to higher revenue the Cargo Aircraft Management (“CAM”) segment and other operations. The company’s shares gained more than 5% in aftermarket trading on August 5.

Before eliminations, ACMI service unit revenues (aircraft, crew, maintenance and insurance) decreased approximately 5% year-on-year to $ 273.30 million. CAM segment revenue jumped 18.3% year-over-year to $ 88.59 million, while other operations revenue increased 26.2% to $ 97.24 million.

Air Transport Services Group, Inc Price, consensus and surprise EPS

Air Transport Services Group, Inc Price, consensus and surprise EPS

Air Transport Services Group, Inc price-consensus-eps-surprise-chart | Air Transport Services Group, Inc quote

ACMI Services revenues were affected by the decline in charter passenger operations for Omni Air commercial customers and the decline in 757 combi operations for the military, in addition to the withdrawal of four Boeing 757 freighter (operated by the company for DHL) in 2020. Total block hours revenue increased 18% year over year, primarily due to a 26% increase in block hours for air cargo operations. CAM segment revenues during the current quarter were increased by the leasing of an additional 17,767 cargo ships. Segment revenues from external customers increased 33% in the June quarter.

As of June 30, 2021, the company’s total in-service fleet consisted of 110 Boeing aircraft (19 passengers and 91 cargo), up from 94 at the end of the second quarter of 2020. The fleet also includes non-CAM aircraft. During this time, 80 Boeing 767 cargo planes owned by CAM were leased to external customers.

Total operating expenses decreased 8.3% in the June quarter to $ 325.25 million. Capital expenditures amount to $ 300.2 million, up 12.9% in the first half of 2021. The amount includes $ 200.1 million for the acquisition and modification of passenger aircraft for conversion to cargo.

Outlook

Air Transport Services, currently ranked Zacks Rank # 2 (Purchase), expects 2021 Adjusted EBITDA to be at least $ 525 million, indicating a 6% improvement from the 497 figure. million dollars released in 2020. Capital spending for 2021 is estimated to be approximately $ 550 million compared to previous forecast of $ 500 million. The forecast increase is due to the company’s commitment to acquire five additional passenger aircraft (four Boeing 767-300 and one Airbus A321-200) for conversion. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Sectoral insights

Let’s take a look at some of the other earnings reports recently released by companies in the Zacks Transportation industry:

Knight-Swift Transportation Holdings KNX, ranked Zacks Rank # 2, reported second quarter 2021 profit (excluding 6 cents of one-time items) of 98 cents per share, beating Zacks’ consensus estimate of 87 cents. Total revenue of $ 1,315.7 million also exceeded Zacks’ consensus estimate of $ 1,300.8 million.

United parcel service UPS, wearing a Zacks Rank # 3 (Hold), reported second quarter 2021 profit (excluding a dime of one-time items) of $ 3.06 per share, beating the consensus estimate of Zacks of $ 2.75. Quarterly revenue of $ 23,424 million also exceeded Zacks’ consensus estimate of $ 23,085.4 million.

Ryanair Holdings RYAAY, wearing a Zacks Rank # 4 (Sell), suffered a loss of $ 1.46 per share in the first quarter of fiscal 2022 (ended June 30, 2021), lower than Zacks’ consensus estimate for a loss of $ 1.50. Quarterly revenue of $ 446.4 million is lower than Zacks’ consensus estimate of $ 459 million.

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