Why AerCap Shares Are Rising Today

AerCap Holdings N.V. AER reported second-quarter FY23 total lease revenue growth of 10% year-on-year to $1.72 billion, missing the analyst consensus of $1.82 billion.

Total revenues and other income rose 15% to $1.92 billion.

Basic lease rents were $1.56 billion compared with $1.46 billion last year.

AerCap had a return on equity of 12% and adjusted return on equity of 15% for the second quarter of 2023.

Selling, general and administrative expenses increased 14% to $120 million.

The company reported an adjusted debt/equity ratio of 2.51 to 1 as of June 30, 2023.

Adjusted EPS of $2.56 beat the analyst consensus of $2.06.

AerCap held $1.31 billion in cash and equivalents as of June 30, 2023.

The company repurchased about 5.1 million shares in Q2, at an average price of $58.54, for a total of $296 million.

In July 2023, AER Board of Directors approved a new share repurchase program authorizing total repurchases of up to $500 million of AerCap ordinary shares through December 31, 2023.

“We continue to benefit from strong demand for our aviation assets, as well as a robust sales market,” said CEO Aengus Kelly.

Outlook: AerCap raised the FY23 adjusted EPS guidance to $8.50-$9.00 versus the consensus of $8.81.

Related: AerCap Likely To Post Higher Q2 Earnings; Here's A Look At Recent Price Target Changes By The Most Accurate Analysts

Price Action: AER shares traded higher by 5.54% at $69.50 premarket on the last check Monday.