AerSale (NASDAQ:ASLE) Announces Earnings Results

AerSale (NASDAQ:ASLE) posted its quarterly earnings data on Thursday. The company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.15), FiscalAI reports. AerSale had a negative net margin of 1.23% and a negative return on equity of 0.27%. The business had revenue of $70.93 million during the quarter, compared to the consensus estimate of $81.24 million.

Here are the key takeaways from AerSale’s conference call:

• Second-quarter results declined sharply: revenue fell to $70.9 million from $107.4 million and adjusted EBITDA dropped to $2.2 million from $18.3 million, primarily because there were no flight equipment sales versus $33.4 million of such sales a year earlier.
• Year-to-date operating cash flow was negative $33.5 million, while available liquidity stood at approximately $34 million, including only $2.2 million in cash; management attributed the cash use to inventory and make-ready investments ahead of asset sales and leases.
• Management expects a meaningfully stronger second half as several engines exit repair, a $35 million 737 sale to the U.S. Marshals Service and other engine sales close, and the remaining two 757 converted freighters are monetized or placed on lease.
• Recurring businesses continued to expand, with leasing revenue up roughly 50% year over year to $12.4 million and Tech Ops revenue up 8.7% to $33.8 million; the company also reported improving efficiency at its Millington and LandingGear facilities.
• AerSale is reallocating some USM material from piece-part sales into complete engines and other flight equipment, arguing this can produce higher margins and faster capital recovery, although it reduces near-term USM revenue and increases capital requirements.

AerSale Price Performance

Shares of AerSale stock traded down $0.40 on Friday, reaching $5.90. 1,087,386 shares of the stock were exchanged, compared to its average volume of 306,739. The firm’s 50 day moving average is $6.29 and its 200-day moving average is $6.66. AerSale has a one year low of $5.56 and a one year high of $9.12. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.89 and a current ratio of 3.74. The firm has a market cap of $278.77 million, a PE ratio of -73.75 and a beta of 0.28.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. Zacks Research upgraded AerSale to a “hold” rating in a research note on Wednesday, July 1st. B. Riley Financial started coverage on AerSale in a report on Monday, June 29th. They issued a “neutral” rating and a $7.50 price objective for the company. Finally, Weiss Ratings downgraded AerSale from a “hold (c-)” rating to a “sell (d)” rating in a research report on Friday, May 15th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, AerSale currently has a consensus rating of “Reduce” and an average target price of $6.75.

Insider Buying and Selling

In other AerSale news, insider Gary Edmund Jones sold 7,491 shares of the firm’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $6.34, for a total value of $47,492.94. Following the sale, the insider owned 162,405 shares of the company’s stock, valued at approximately $1,029,647.70. This trade represents a 4.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Martin Garmendia sold 6,094 shares of AerSale stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $6.34, for a total value of $38,635.96. Following the completion of the transaction, the insider owned 183,377 shares in the company, valued at approximately $1,162,610.18. The trade was a 3.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 21,316 shares of company stock worth $135,160. Corporate insiders own 20.10% of the company’s stock.

Institutional Trading of AerSale

Large investors have recently bought and sold shares of the business. Deutsche Bank AG boosted its stake in AerSale by 6.0% in the fourth quarter. Deutsche Bank AG now owns 32,846 shares of the company’s stock worth $234,000 after buying an additional 1,850 shares in the last quarter. Alliancebernstein L.P. boosted its holdings in AerSale by 6.0% during the 3rd quarter. Alliancebernstein L.P. now owns 48,270 shares of the company’s stock valued at $395,000 after acquiring an additional 2,740 shares during the period. Raymond James Financial Inc. boosted its holdings in AerSale by 6.7% during the 3rd quarter. Raymond James Financial Inc. now owns 44,360 shares of the company’s stock valued at $363,000 after acquiring an additional 2,775 shares during the period. BNP Paribas Financial Markets grew its position in AerSale by 45.6% during the 3rd quarter. BNP Paribas Financial Markets now owns 9,813 shares of the company’s stock worth $80,000 after acquiring an additional 3,071 shares during the last quarter. Finally, Invesco Ltd. grew its position in AerSale by 4.1% during the 2nd quarter. Invesco Ltd. now owns 92,867 shares of the company’s stock worth $558,000 after acquiring an additional 3,652 shares during the last quarter. 69.48% of the stock is owned by institutional investors and hedge funds.

About AerSale

AerSale Inc is an integrated aftermarket solutions provider serving the global commercial, defense and business aviation markets. The company specializes in aircraft and engine maintenance, repair and overhaul (MRO), asset leasing and aviation parts distribution. Its key offerings include airframe heavy maintenance, engine tear‐down and component overhaul, used serviceable material programs and end‐of‐life aircraft disassembly. Through these services, AerSale supports operators seeking to optimize fleet availability, extend asset life cycles and reduce maintenance costs.

Founded in 2009 and headquartered in Coral Gables, Florida, AerSale has grown through strategic acquisitions and organic expansion.