Core Viewpoint - AerCap reported quarterly earnings of $3.29 per share, exceeding the Zacks Consensus Estimate of $2.31 per share, and showing an increase from $2.34 per share a year ago, representing an earnings surprise of 42.42% [1] Financial Performance - The company posted revenues of $2.02 billion for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 6.04%, compared to $1.87 billion in the same quarter last year [1] - Over the last four quarters, AerCap has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [1] Stock Performance - AerCap shares have increased by approximately 13.7% since the beginning of the year, outperforming the S&P 500's gain of 5.6% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.40 on revenues of $1.9 billion, and for the current fiscal year, it is $9.70 on revenues of $7.66 billion [4] - The estimate revisions trend for AerCap is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Industry Context - The Financial - Leasing Companies industry is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [5] - Another company in the same industry, Upbound Group, is expected to report quarterly earnings of $0.77 per share, reflecting a year-over-year decline of 7.2% [5]

Net income for the first quarter of 2024 was $604 million, or $3.02 per share. Adjusted net income for the first quarter of 2024 was $658 million, or $3.29 per share. Raising full year 2024 adjusted earnings per share guidance to approximately $9.20. DUBLIN, May 1, 2024 /PRNewswire/ -- AerCap Holdings N.V. (NYSE: AER), the industry leader across all areas of aviation leasing, today reported strong financial results for the first quarter of 2024. "AerCap continued its strong performance during the first qu ...

Core Insights - AerCap Holdings N.V. published its seventh annual Environmental, Social, and Governance (ESG) Report for the year ended December 31, 2023, highlighting its commitment to sustainable business growth [1][2] Group 1: ESG Ratings and Fleet Modernization - AerCap's ESG ratings have improved, with MSCI upgrading it to 'AA' in September 2023 and Morningstar Sustainalytics to 'Low Risk' in April 2024 [1] - The company has invested approximately $50 billion in new technology aircraft since 2014, ensuring its fleet is composed of around 70% new technology aircraft by net book value and 80% new technology engines as of December 31, 2023 [1][2] Group 2: Emissions and Diversity Initiatives - AerCap achieved a 15% reduction in indirect Scope 3 emissions intensity over the last decade, despite doubling its fleet size during this period [1] - The company made progress on its Diversity, Equity, Inclusion, and Belonging (DEIB) framework, conducting focus groups and training sessions throughout 2023 [1] Group 3: Community Engagement and Industry Collaboration - AerCap donated over $800,000 to charitable and social causes in 2023, demonstrating its commitment to community engagement [1] - The company engaged with regulatory authorities and the aviation industry on policy and decarbonization matters, enhancing its situational awareness [1][2]

Investment Overview - George Soros' hedge fund is making significant investments in stocks, with a notable focus on small-cap stocks and specific companies like Splunk, AerCap Holdings, and Alphabet [1][2][6] Splunk Acquisition - Soros Fund Management held 1.6 million shares of Splunk valued at $240 million, representing over 4.5% of the total portfolio, before Cisco acquired the company for $157 per share, yielding a profit from an average buy price of $141 [1] Small-Cap Stocks - Soros owns 1.2 million shares of the iShares Russell 2000 ETF, which tracks the 2,000 smallest stocks in the Russell 3000 index, indicating a strategic bet on the resurgence of small-cap stocks [2] - Historically, small-cap stocks have outperformed mid and large-cap stocks 60% of the time over a 75-year study, and the Russell 2000 has recently outperformed the S&P 500 [2] Notable Holdings in iShares Russell 2000 ETF - The largest stock in the Russell 2000 index is Super Micro Computer with a market cap of $55.5 billion, followed by Microstrategy at $24 billion, contributing to the ETF's strong performance [3] AerCap Holdings Performance - AerCap Holdings has a market valuation of $18 billion, with shares up 18% year-to-date and 57% over the past year [4] - The company reported fourth-quarter revenue of $1.9 billion, slightly below expectations, but earnings per share of $3.11 exceeded projections [5] - Soros Fund Management holds nearly 2.5 million shares of AerCap, valued at $183.5 million, representing a 40% gain on his holdings [5] Alphabet's Position - Soros holds 1.2 million shares of Alphabet, valued at $170.3 million, constituting a 3.2% position in the fund, despite the stock being down 13% from the average buy price [6] - Alphabet maintains a 91% market share in search, and despite recent advertising revenue disappointments, it is expected to benefit from increased ad spending in an election year [7] - Google Cloud is growing rapidly, outpacing competitors like Amazon AWS and Microsoft Azure, indicating potential for future growth [7]

DUBLIN, April 4, 2024 /PRNewswire/ -- AerCap Holdings N.V. ("AerCap" or the "Company") (NYSE: AER) today announced it will host a conference call and webcast for investors and analysts on Wednesday, May 1, 2024 at 8:30 a.m. Eastern Time to review its first quarter 2024 financial results. AerCap's first quarter 2024 earnings press release will be released before financial markets open in the United States on May 1, 2024. A copy of the press release will be posted on the "Investors" section of AerCap's websit ...

Core Insights - George Soros's investment strategies continue to attract attention, with his Soros Fund Management managing a portfolio valued at over $7.6 billion and holding 209 positions [1] Group 1: Recent Trades - Soros Fund Management made significant trades in Q4, including notable buys and sells, reflecting strategic investment decisions [1] - The fund added over one million shares of Splunk (SPLK), which reported a GAAP EPS of $2.28 and revenues of $1.49 billion, a 19.2% YOY increase [2] - Soros sold his entire stake in Arm Holdings (ARM), consisting of 325,000 shares, after the stock surged 93% following strong earnings [3][4] - The fund reduced its stake in Alphabet (GOOG, GOOGL) by selling 185,000 shares, influenced by valuation concerns and potential brand risks associated with the Gemini AI chatbot [5] - Soros increased his position in Novo Nordisk (NVO) by adding 29,000 shares, focusing on the anticipated FDA approval for its weight loss drug, Wegovy [6][7] - The fund initiated a sizeable position in AerCap Holdings (AER), expanding its investment by approximately 612,000 shares, reflecting a strategic move towards fleet modernization [8][9] - Soros increased his stake in Jacobs Solutions (J) by adding 172,400 shares, highlighting the company's strong financial performance and operational efficiency [10][11] - The fund sold over 610,000 shares of CRH (CRH) while retaining over 1.4 million shares, likely due to concerns over the company's valuation after recent outperformance [12]

Financial Data and Key Metrics Changes - AerCap reported a GAAP net income of $3.1 billion for 2023, with an earnings per share (EPS) of $13.78, and an adjusted net income of $2.4 billion with an adjusted EPS of $10.73 [5][20] - The company generated a record operating cash flow of $5.3 billion, marking a significant increase in cash generation capabilities [5][16] - The book value per share increased by 25% to $83.81 by the end of 2023 [19][25] Business Line Data and Key Metrics Changes - Basic lease rents for Q4 2023 were $1.576 billion, reflecting strong cash collections and power-by-the-hour arrangements [21] - Maintenance revenues for Q4 were $142 million, which would have been $167 million without amortization [21] - The net gain on sale of assets for Q4 was $94 million, with a total of nearly $2.8 billion in asset sales for the full year, generating a total gain of $490 million [22][26] Market Data and Key Metrics Changes - The global supply-demand imbalance for aircraft is expected to persist, driven by production cuts from Boeing and Airbus due to past events like the grounding of the 737 MAX and COVID-19 [6][8] - The company noted that production rates remain approximately 20% below 2018 levels, contributing to sustained demand for aviation assets [8][12] Company Strategy and Development Direction - AerCap plans to continue capitalizing on favorable supply-demand dynamics, with a focus on increasing lease rates and enhancing operating cash flows [6][12] - The company announced a new $500 million share repurchase program, reflecting confidence in its outlook for 2024 and beyond [5][19] - AerCap aims to maximize shareholder value through prudent capital deployment and maintaining a strong risk profile [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the business, citing robust demand for aviation assets and a favorable market environment [5][6] - The company anticipates adjusted EPS for 2024 to be in the range of $7.50 to $8.50, excluding any gains on sale [26][30] - Management highlighted the importance of addressing supply chain issues and the ongoing challenges in the MRO network, particularly for engines [63][64] Other Important Information - AerCap's leverage ratio at the end of Q4 was 2.47 times, indicating a reduction in leverage despite significant capital expenditures and share repurchases [24] - The company maintains a strong liquidity position with total sources of liquidity around $19 billion [23] Q&A Session Summary Question: Can you address the tightening of net spread less depreciation in Q4? - Management noted that the decrease was due to early refinancing of bond maturities and accelerated depreciation on older aircraft [32] Question: Why does the 2024 guidance appear conservative compared to 2023 results? - Management explained that the guidance excludes gains on sale and includes estimates for default costs and higher interest rates, while still expecting to outperform [34] Question: Are share buybacks included in the guidance? - Management confirmed that some share repurchases are factored into projections, depending on earnings and capital availability [37] Question: What were the lease extension rates for narrow and wide bodies? - Management indicated that nearly all wide-body leases were extended, with strong demand for narrow bodies as well [38] Question: How do lease extensions and asset sales impact net spread? - Management acknowledged that selling older assets can reduce net spread but emphasized the focus on maximizing EPS and shareholder value [41][43] Question: What is the average recovery percentage from Russian aircraft? - Management confirmed that the average recovery is around 70%, with ongoing insurance claims still in place [45] Question: Update on cargo conversion program and revenue opportunity? - Management stated that 777 conversions are expected to roll out in 2024, but no revenue from these conversions is included in the current guidance [48] Question: What is the mix of assets in the $2 billion sales guide? - Management indicated that the asset mix would focus on older assets, but specific gain on sale guidance was not provided [50] Question: How have lease rates trended recently? - Management noted a slight upward trend in lease rates, despite a fall in interest rates [57]

Company Overview - AerCap Holdings N.V. is a global leader in aviation leasing, serving approximately 300 customers worldwide with comprehensive fleet solutions [2] - The company is listed on the New York Stock Exchange under the ticker AER and is headquartered in Dublin, with offices in various global locations including Miami, Singapore, and Shanghai [2] Financial Reporting - AerCap has filed its annual report on Form 20-F, which includes audited financial statements for the fiscal year ended December 31, 2023, with the U.S. Securities and Exchange Commission [1] - The Form 20-F can be accessed on AerCap's website and the SEC's website, and interested parties can request a complimentary paper copy [1]

Financial Performance - AerCap achieved a record GAAP Net Income of $3.1 billion in 2023 and an Adjusted Net Income of $2.4 billion[6] - The company returned $2.6 billion to shareholders in 2023 and announced a new $500 million share repurchase authorization[6] - AerCap's book value per share has grown by a CAGR of 20% since March 2022[14] - The company projects an adjusted EPS of $7.50 - $8.50 for FY 2024, not including any gains on sale[6, 30] Market Dynamics - Demand continues to outstrip supply across aircraft, engines, and helicopters[6] - 2023 commercial aircraft deliveries remain behind even 2015 levels[8] - Strong demand for mid-life and older aircraft supports secondary sales at attractive margins[11] Capital Management - AerCap recovered $1.3 billion in insurance settlement proceeds to date[6] - The company has a strong liquidity position, with next 12 months' sources-to-uses coverage of 1.4x and ~$19 billion in sources of liquidity[23] - Approximately 10.3 million shares were repurchased in 4Q 2023 at an average price of $62.86, for a total of ~$649 million[24] Portfolio and Assets - New technology aircraft comprise approximately 70% of the aircraft fleet[40] - The company reported a net gain on sale of assets of $94 million in 4Q 2023, representing an 18% unlevered gain-on-sale margin[21]

Core Insights - AerCap Holdings N.V. reported record financial results for the full year 2023, achieving a net income of $3.1 billion or $13.78 per share, and $1.1 billion or $5.37 per share for the fourth quarter of 2023 [1][19] - The company returned $2.6 billion to shareholders in 2023 and announced a new $500 million share repurchase authorization [1][15] - The CEO highlighted strong operating conditions and positive momentum in the aviation leasing market, with over $600 million in insurance settlements collected in the fourth quarter [2][3] Financial Performance - The adjusted net income for the full year 2023 was $2.4 billion or $10.73 per share, with $641 million or $3.11 per share for the fourth quarter [1][19] - Return on equity was 27% for the fourth quarter, with an adjusted return on equity of 16% [3] - Book value per share increased approximately 25% to $83.81 as of December 31, 2023, compared to the previous year [3][12] Revenue and Income Breakdown - Total lease revenue for the fourth quarter was $1.718 billion, a 5% increase from the previous year, with basic lease rents contributing $1.576 billion [4][32] - The net gain on sale of assets for the fourth quarter was $94 million, down 22% from the previous year, while total revenues and other income reached $1.899 billion [4][32] - The company recognized recoveries related to the Ukraine conflict amounting to $614 million in the fourth quarter [7][30] Expenses and Cash Flow - Selling, general, and administrative expenses for the fourth quarter were $122 million, a 32% increase from the previous year, driven by higher compensation and operational costs [8] - Cash flow from operating activities for the fourth quarter was $1.4 billion, totaling $5.3 billion for the full year [3][30] - Interest expense for the fourth quarter was $496 million, with an average cost of debt of 3.7% [7][22] Shareholder Returns and Equity - The company repurchased 44.3 million shares at an average price of $59.09 during 2023 [3][15] - The adjusted debt/equity ratio as of December 31, 2023, was 2.47 to 1, reflecting the company's capital structure [3][20] - Total shareholders' equity increased to $16.589 billion as of December 31, 2023, compared to $16.118 billion the previous year [13][12]