AerCap Shares Soar Following Upward Revision Of FY23 Earnings Forecast, Q3 Earnings Beat

AerCap Holdings N.V. AER reported third-quarter FY23 total lease revenue growth of 7% year-on-year to $1.701 billion, missing the analyst consensus of $1.89 billion.

Adjusted EPS of $2.81 beat the analyst consensus of $2.73. 

Total revenues and other income rose 10% to $1.892 billion.

Basic lease rents were $1.575 billion in the third quarter, compared with $1.473 billion Y/Y. 

Basic lease rents for the third quarter were impacted by $41 million of lease premium amortization.

Net gain on sale of assets for the third quarter was $130 million, relating to 45 assets sold for $682 million, compared with $69 million Y/Y.

The company garnered a 24% margin on the gain on the sale of assets in the third quarter.

AerCap had an adjusted return on equity of 16% for the third quarter.

The adjusted debt/equity ratio of the company was 2.51 to 1 as of Sept. 30, 2023.

AerCap held $2.61 billion in cash and equivalents as of Sept. 30, 2023.

Approximately 20 million shares were repurchased in the third quarter for approximately $1.2 billion.

In October 2023, the company's board of directors approved a new share repurchase program authorizing total repurchases of up to $500 million of AerCap ordinary shares through March 31, 2024.

“We are pleased to announce a new $500 million share repurchase program, taking total authorizations to $2.65 billion so far this year and underlying our confidence in the value on offer today,” said CEO Aengus Kelly.

Outlook: AerCap raised the FY23 adjusted EPS guidance to $9.50 from $8.50-$9 versus the consensus of $10.15.

Price Action: AER shares are trading higher by 2.67% to $61.04 on the last check Friday.

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