ATSG Gears Up to Report Q3 Earnings: What's in the Offing?

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Air Transport Services Group ATSG is scheduled to report third-quarter 2024 results on Nov. 8 before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

ATSG has a mixed earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average miss is 7.70%.

Air Transport Services Group, Inc Price and EPS Surprise

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

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

The Zacks Consensus Estimate for the company’s soon-to-be-reported quarter’s earnings has remained flat at 19 cents per share in the past 60 days.

Air Transport Services Group’s top-line performance is expected to have been bolstered by an increased demand scenario in the September-end quarter. The Zacks Consensus Estimate for revenues is pegged at $509.8 million, which indicates a rise of 4.4% from third-quarter 2023 actuals.

Our estimate for ACMI (aircraft, crew, maintenance, and insurance) Services indicates an increase of 4.2% quarter over quarter, while cargo aircraft management (CAM) is anticipated at $110.9 million.

The company’s robust cost-cutting initiatives are also expected to have boosted its bottom line in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Air Transport Services Group this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Air Transport Services Group has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ATSG’s Q2 Highlights

Quarterly earnings (excluding 8 cents from non-recurring items) of 19 cents per share surpassed the Zacks Consensus Estimate of 16 cents but plunged 66.7% year over year.  Customer revenues (derived after eliminating internal revenues from total revenues) of $488.4 million missed the Zacks Consensus Estimate of $512.3 million and fell 7.7% year over year.

ATSG primarily operates through the following reporting segments: CAM and ACMI Services. Revenues from ACMI Services decreased 7.7% year over year to $338.2 million. Revenues from CAM and other operations declined 6.2% and 11.9% to $104.5 million and $97.64 million, respectively.

Q3 Performances of Other Transportation Companies

Delta Air Lines DAL reported 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.