AL's fourth-quarter 2024 performance is expected to have been weighed down by higher interest expenses and rising operating expenses.
The Zacks Transportation - Equipment and Leasing industry seeks to benefit from consistent shareholder-friendly initiatives. WAB, AL and GBX are set to gain the most.
Delays in deliveries from major aircraft manufacturers are in some cases getting worse, and estimates of delay time can not be trusted, Steven Udvar-Hazy, the executive chairman of Air Lease Corp said on Monday.
AL's top line benefits from steady growth in fleet.
Rising operating expenses and a debt-laden balance sheet do not bode well for AL.
Goldman Sachs analysts added Air Lease to the firm's US Conviction List as part of its monthly update. The firm has a Buy rating on the shares with a $65 price target. Goldman believes Air Lease is poised to see sustained earnings growth as it takes delivery of attractive new tech narrow body airplanes and leases them to customers at an attractive spread.
Air Lease Corporation's stock has risen 30% since August, driven by a 4.7% revenue increase and higher aircraft sales despite higher operating expenses. Net spread remains pressured due to the inability to pass higher interest rates on existing leases, but post-pandemic leases in 2025 should improve net spread. Valuation based on book value suggests a 6-11% upside, while EV/EBITDA valuation projects a $61.79 price target for 2025, maintaining a buy rating.
With AL's shares appreciating lately, we assess the stock's current positioning to determine whether it's a good investment choice at this juncture.
AL's third-quarter 2024 results benefit from fleet growth and increased gains from aircraft sales.
Air Lease Corporation (AL) Q3 2024 Earnings Conference Call Transcript
Air Lease (AL) came out with quarterly earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to earnings of $1.10 per share a year ago.
Air Lease's third-quarter results are expected to be boosted by upbeat flight equipment rental revenues.