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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.
Find the latest EPS estimates and surprises on ZacksEarnings Calendar.
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.