A Mixed Bag: EPS Growth, Revenue Fluctuations, and Share Buyback
AerCap Holdings N.V. shares are experiencing a downturn post its Q4 FY23 earnings report.
Revenue Overview: Ups and Downs
Total lease revenue saw a 5% Year-over-Year increase, reaching $1.718 billion. However, total revenues and other income witnessed a 4% rise to $1.899 billion, slightly below the estimated $1.926 billion.
Operational Performance: Key Highlights
In the fourth quarter, basic lease rents soared to $1.576 billion, up by 6% Year-over-Year, slightly affected by $40 million of lease premium amortization.
The company sealed 179 lease agreements in Q4 for a variety of aircraft and engines.
Additionally, AerCap boasted an impressive 16% adjusted return on equity for Q4. Furthermore, the adjusted EPS of $3.11 exceeded the predicted $2.45.
Asset Sales and Financial Stability
AerCap netted a gain of $94 million from the sale of 35 assets amounting to $625 million, as opposed to $121 million from the previous year.
In a significant move, the company saw recoveries worth $614 million related to the Ukraine Conflict during the fourth quarter of 2023.
The adjusted debt/equity ratio stood at 2.47 to 1, with AerCap holding $1.8 billion in cash and equivalents by the end of December 2023.
Portfolio Strength and Future Outlook
AerCap boasted a portfolio of 3,452 aircraft, engines, and helicopters by December 31, 2023, which were either owned, on order, or managed.
The company’s Board of Directors sanctioned a $500 million share repurchase program scheduled until September 30, 2024.
CEO Optimism and Price Movement
Chief Executive Officer Aengus Kelly expressed optimism following the results, citing a strong operating environment and positive momentum in leasing and sales of aircraft, engines, and helicopters.
Despite the recent performance, AER shares witnessed a 1.06% decline, trading at $77.74 in the latest check on Friday.
