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As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the vehicle parts distributors industry, including FTAI Aviation (NASDAQ:FTAI) and its peers.
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Transportation parts distributors that boast reliable selection in sometimes specialized areas combined and quickly deliver products to customers can benefit from this theme. Additionally, distributors who earn meaningful revenue streams from aftermarket products can enjoy more steady top-line trends and higher margins. But like the broader industrials sector, transportation parts distributors are also at the whim of economic cycles that impact capital spending, transportation volumes, and demand for discretionary parts and components.
The 4 vehicle parts distributors stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.9%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest Q4: FTAI Aviation (NASDAQ:FTAI)
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ:FTAI) sells, leases, maintains, and repairs aircraft engines.
FTAI Aviation reported revenues of $498.8 million, up 59.5% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates.
“In the last quarter, we delivered outstanding financial performance across the board, and I am pleased to see the continued strength of our Aerospace Products and Aviation Leasing segments,” said Joe Adams, Chairman of the Board and CEO of FTAI.
FTAI Aviation scored the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 3.4% since reporting and currently trades at $128.50.
Is now the time to buy FTAI Aviation? Access our full analysis of the earnings results here, it’s free.
Best Q4: Air Lease (NYSE:AL)
Established by a founder of Century City in Los Angeles, Air Lease Corporation (NYSE:AL) provides aircraft leasing and financing solutions to airlines worldwide.
Air Lease reported revenues of $712.9 million, flat year on year, outperforming analysts’ expectations by 1.6%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.