Airline Transport Services (ATSG) 4th Quarter Earnings Online, Higher Year-over-Year – February 28, 2022


Air Transport Services Groupit’s (ATSG Free Report) fourth-quarter 2021 earnings (excluding 8 cents of one-time items) of 52 cents per share matched Zacks’ consensus estimate. Net income improved 36.8% year-over-year thanks to an impressive revenue performance. Revenue not only grew 20.8% year-over-year to $482 million, but also topped Zacks’ consensus estimate of $446 million.

Revenue was driven by higher revenues from both segments, namely ACMI (aircraft, crew, maintenance and insurance) and Cargo Aircraft Management (CAM) services. Before eliminations, revenue for the ACMI services unit increased 21.2% to $333.79 million. Revenue from the CAM segment increased by 26.53% to $105.48 million, while revenue from other activities decreased slightly to $94.34 million.

CAM segment revenues in the reported quarter were boosted by the external leases of four additional 767-300 freighters compared to the prior year level. External client segment revenue increased 31% in the December quarter. ACMI services unit revenue benefited from better airline operations. Blocked hours increased 19% year-over-year in the quarter.

ATSG’s total fleet included 131 aircraft (19 passenger and 112 freighter) in service at the end of the December quarter 2021 compared to 114 at the end of the fourth quarter 2020. Of the 130 aircraft, 120 were owned by CAM. Total operating expenses rose 18.3% in the December quarter to $402.37 million as fuel expenses rose 78.4% due to soaring oil prices.

Outlook

ATSG, which currently holds a No. 3 Zacks rank (Hold), expects adjusted EBITDA for 2022 to be $640 million, nearly $100 million above 2021 levels. Capital expenditures for 2022 are expected to be $590 million ($390 million for growth and $200 million for sustaining capital). Driven by strength in its cargo leasing and airline businesses, ATSG expects adjusted EPS for 2022 to be $2, indicating 20% ​​growth from the reported 2021 level. is above the Zacks consensus estimate of $1.86.

You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sector insights

Let’s take a look at some of the other earnings releases in the Zacks Transportation industry.

Washington International Shippers (EXPD Free Report) reported Q4 2021 earnings of $2.66 per share, beating Zacks’ consensus estimate of $2.02. Net income jumped more than 100% year over year. Results benefited from higher air cargo tonnage volumes.

Expeditors’ total revenue of $5,396.3 million topped Zacks’ consensus estimate of $4,257 million and was also up significantly year-over-year. Higher revenues in all segments boosted turnover.

GATX Company (GATX Free Report) reported fourth-quarter 2021 earnings (excluding 11 cents of one-time items) of $1.58 per share, which beat Zacks’ consensus estimate of $1.07. Net income jumped more than 200% year over year.

GATX’s total revenue of $321 million increased 5.3% year-over-year, primarily driven by a 5.2% rise in rental revenue to $288.4 million of dollars. Rental income contributed 89.8% to turnover.

Werner Enterprises (WERN Free Report) reported fourth-quarter 2021 earnings (excluding 2 cents of one-time items) of $1.13 per share, which beat Zacks’ consensus estimate of 96 cents. Net profit increased by 27% on an annual basis.

Werner’s total earnings of $765.2 million also topped Zacks’ consensus estimate of $725.1 million. Revenue increased 23.4% year-on-year, primarily driven by higher revenues in the Truckload Services and Logistics segments.

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