AerSale Corporation (ASLE) reports second-quarter loss, misses revenue estimates

AerSale Corporation (ASLE) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of $0.09. That compares to a year-ago loss of $0.56 per share. These numbers were adjusted for one-time items.

This quarterly report represents an earnings surprise of -133.33%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced earnings of $0.07, delivering a surprise of -53.33%.

Over the last four quarters, the company has topped consensus earnings per share estimates only once.

AerSale Corporation, which belongs to the Zacks Aerospace – Defense Equipment industry, posted revenues of $69.33 million for the quarter ended June 2023, missing the Zacks Consensus Estimate by 14.37%. This compares to revenues of $139.61 million reported a year ago. The company has failed to beat the consensus revenue estimate over the last four quarters.

The sustainability of the stock’s current price movement based on recently-released numbers and future earnings expectations will primarily depend on management’s commentary following the earnings conference call.

AerSale Corporation shares have lost about 10.8% since the beginning of the year compared with the S&P 500’s gain of 17.7%.

What’s next for AerSale Corporation?

Although AerSale Corporation has underperformed the market this year, investors are wondering: what’s next for this company’s stock?

There are no easy answers to this key question, but one reliable metric that can help investors address this issue is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarters, but also how those expectations have changed recently.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of its earnings release, the estimate revision trend for AerSale Corporation is favorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank of #1 (Strong Buy) for the stock. As such, we can expect the stock to outperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the upcoming quarters and current fiscal year change in the coming days. The current consensus EPS estimate is $0.42 on $151.04 million in revenue for the coming quarter and $1.01 on $473.67 million in revenue for the current fiscal year.

Investors should be aware that the outlook for the industry may also have a significant impact on share prices. In terms of the Zacks Industry Rank, Aerospace and Defense Equipment is currently in the top 9% of over 250 Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another company in the same industry, CAE (CAE), has not yet released earnings for the quarter ending June 2023. The results are expected to be released on August 9.

The civil and military flight simulator company is expected to report quarterly earnings of $0.15 per share in its upcoming report, representing a year-over-year change of +200%. The consensus earnings per share estimate for the quarter remained unchanged over the past 30 days.

CAE revenue is expected to be $765.4 million, up 4.7% from the same quarter last year.

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