Anticipating Q1 Earnings Report: Spotlight on Air Lease (AL) in the Cryptocurrency Market

• Air Lease Corporation is set to report its first-quarter 2024 results on May 6, following the market close.
• The company has a strong track record of surpassing earnings estimates, with an average surprise of 20.15% over the past four quarters.
• The Zacks Consensus Estimate for AL’s Q1 2024 earnings has been revised upward by 5.6% in the past 90 days.

Air Lease Corporation’s Q1 2024 earnings report is highly anticipated, following a history of impressive earnings surprises. The company’s strong fleet growth and increased sales activity are expected to drive revenue growth.

Q1 Expectations

The Zacks Consensus Estimate for Air Lease’s Q1 2024 revenues is at $682.07 million, suggesting a 7.2% YoY growth. The revenue increase is likely due to the company’s expanding fleet, increased sales activity, and higher end-of-lease revenues. However, rising operating expenses, primarily from higher interest expenses and depreciation of flight equipment costs, may impact the company’s bottom line.

What Our Model Says

Our model does not conclusively predict an earnings beat for Air Lease this time. A positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) usually increase the odds of an earnings beat, but Air Lease currently has an Earnings ESP of -5.58% and a Zacks Rank #1.

Highlights of Q4

Air Lease’s Q4 2023 earnings per share were $1.89, surpassing the Zacks Consensus Estimate of $1.10 and improving 56.2% YoY. The strong results were driven by robust revenues of $716.6 million, which outpaced the consensus estimate of $683.5 million and surged 19.1% YoY, thanks to the company’s growing fleet and increased lease revenues.

Stocks to Consider

Investors may want to consider stocks from the broader Zacks Transportation sector that have the right combination of elements to beat their Q1 2024 earnings. Expeditors International of Washington, Inc. (EXPD) has an Earnings ESP of +6.39% and a Zacks Rank #2, and will release results on May 7. Euronav NV (EURN) currently has an Earnings ESP of +6.94% and a Zacks Rank #3, and will release its Q1 2024 results on May 8.

Conclusion

Air Lease Corporation’s Q1 2024 earnings report is highly anticipated, given the company’s history of impressive earnings surprises. Despite the potential impact of rising operating expenses, the company’s strong fleet growth and increased sales activity are expected to drive revenue growth. Investors should also consider other stocks in the Zacks Transportation sector with the potential to beat earnings estimates.