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Air Transport Services Group, Inc. (ATSG) reported disappointing third-quarter 2024 results wherein both earnings and revenues missed the Zacks Consensus Estimate. Quarterly earnings per share (EPS) of 13 cents lagged the Zacks Consensus Estimate of 19 cents and plunged 59.4% year over year.

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Customer revenues (derived after eliminating internal revenues from total revenues) of $471.3 million missed the Zacks Consensus Estimate of $507.9 million and fell 9.9% year over year.

Air Transport Services Group, Inc Price, Consensus and EPS Surprise

Air Transport Services Group, Inc price-consensus-eps-surprise-chart | Air Transport Services Group, Inc Quote

As declared on Nov. 4, 2024, ATSG has inked a deal with Stonepeak, a firm specializing in infrastructure and real assets, wherein ATSG will be purchased by the latter in an all-cash transaction with an enterprise value of $3.1 billion. Per the deal, ATSG common stockholders will receive $22.50 per share in cash. On closure of the deal, ATSG’s shares will no longer be traded on the Nasdaq, and ATSG will become a private company.

ATSG primarily operates through the following reporting segments, namely Cargo Aircraft Management or CAM and ACMI (aircraft, crew, maintenance & insurance) Services. Revenues from CAM’s other operations grew 2.5% year over year to $112.46 million. Revenues from ACMI Services and other operations decreased 11.8% and 17.5% year over year to $321.97 million and $93 million, respectively.

Air Transport’s total fleet in service included 143 aircraft (20 passengers and 123 freighters) at the end of the third quarter of 2024.

Total operating expenses decreased 5.7% to $449.57 million. Adjusted EBITDA fell 5.2% year over year to $129.45 million.

ATSG ended the third quarter with cash, cash equivalents and restricted cash of $44.87 million compared with $28.71 million at the prior-quarter end. As of Sept. 30, 2024, the company had long-term debt of $1.56 billion compared with $1.57 billion at the end of the prior quarter.

ATSG generated $135.55 million of cash from operating activities. Adjusted free cash flow was $117.35 million.

Currently, ATSG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Transportation Companies

Delta Air Lines DALreported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.

DAL’s revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year.

J.B. Hunt Transport Services, Inc.’sJBHT third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.

JBHT’s total operating revenues of $3.07 billion surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The downfall was caused by 5% and 6% decreases in gross revenue per load in Intermodal (JBI) and Truckload, respectively; declines in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services, respectively; and 6% fewer stops in Final Mile Services. These were partially offset by JBI load growth of 5%, which included growth in the transcontinental and eastern networks and a 3% increase in revenue per load in ICS. JBHT’s total operating revenues, excluding fuel surcharge revenues, decreased less than 1% from the year-ago quarter.

United Airlines Holdings, Inc. UAL posted third-quarter 2024 EPS (excluding 43 cents from non-recurring items) of $3.33, which surpassed the Zacks Consensus Estimate of $3.10. Earnings decreased 8.8% on a year-over-year basis.

UAL’s operating revenues of $14.84 billion beat the Zacks Consensus Estimate of $14.76 billion. The top line increased 2.5% year over year due to upbeat air travel demand. This was driven by a 1.6% rise in passenger revenues (accounting for 91.3% of the top line) to $13.56 billion. Almost 45,559 passengers traveled on UAL flights in the third quarter, up 2.7% year over year.

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Air Transport Services (ATSG) reported $471.25 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 9.9%. EPS of $0.13 for the same period compares to $0.32 a year ago.

The reported revenue represents a surprise of -7.21% over the Zacks Consensus Estimate of $507.86 million. With the consensus EPS estimate being $0.19, the EPS surprise was -31.58%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Air Transport Services performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenues- ACMI Services: $321.97 million versus the four-analyst average estimate of $360.13 million. The reported number represents a year-over-year change of -11.9%.
• Revenues- Other Activities: $93 million compared to the $102.44 million average estimate based on four analysts. The reported number represents a change of -17.6% year over year.
• Revenues- Eliminate internal revenues: -$56.19 million versus the four-analyst average estimate of -$63.18 million. The reported number represents a year-over-year change of -13.1%.
• Revenues- CAM: $112.47 million versus $108.50 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +2.5% change.
• Revenues- CAM- Lease incentive amortization: -$3.10 million versus -$2.71 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -9.5% change.
• Revenues- CAM- Aircraft leasing and related revenues: $115.57 million compared to the $111.80 million average estimate based on two analysts. The reported number represents a change of +2.1% year over year.
• Pre-Tax Earnings- CAM: $18.28 million compared to the $16.23 million average estimate based on three analysts.
• Pre-Tax Earnings- Other Activities: -$1.59 million compared to the $0.43 million average estimate based on two analysts.
• Pre-Tax Earnings- ACMI Services: -$14.41 million compared to the -$2.92 million average estimate based on two analysts.

View all Key Company Metrics for Air Transport Services here>>>

Shares of Air Transport Services have returned +44.9% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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