Air Lease Corporation (NYSE:AL) Q4 Results Exceed Expectations

Highlights:

* Revenue: $712.9 million, meeting analyst estimates (1.6% beat)
* EPS (GAAP): $0.83, surpassing estimates by 12.2%
* Operating Margin: 19.6% (decline compared to 62.7% in Q4 2023)
* Owned Aircraft: 489, exhibiting a 26% year-over-year increase
* Market Capitalization: $5.09 billion

Company Overview:

Air Lease Corporation (NYSE:AL) provides aircraft leasing and financing services globally. Established in Los Angeles, the company has emerged as a key player in the aircraft industry.

Sales Growth:

Over the past five years, Air Lease's sales have grown moderately at a 6.3% compounded annual growth rate. However, its recent two-year revenue growth of 8.6% indicates potential for improvement. The company's owned aircraft count also experienced a 10.2% annualized growth over the last two years.

Operating Margin:

Historically, Air Lease has maintained an impressive operating margin of 43.9% over the past five years. Nevertheless, its operating margin declined to 19.6% in Q4, reflecting less efficient operations.

Earnings Per Share (EPS):

Despite revenue growth, Air Lease's EPS has declined by 8.1% annually over the past five years. This indicates decreasing profitability on a per-share basis. However, the company's two-year annual EPS growth of 121% is a positive sign. In Q4, AL reported EPS of $0.83, exceeding analyst expectations.

Investment Considerations:

Air Lease's recent financial performance, including its EPS beat and revenue outperformance, presents a positive picture. However, its operating margin decline and historical EPS decline raise concerns. Investors should carefully consider these factors when evaluating AL as an investment opportunity.

Note: This summary is intended solely for informational purposes and does not constitute investment advice.