Air Lease (AL) reported $667.29 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 0.8%. EPS of $1.23 for the same period compares to $1.10 a year ago.The reported revenue represents a surprise of -3.00% over the Zacks Consensus Estimate of $687.93 million. With the consensus EPS estimate being $1.56, the EPS surprise was -21.15%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...

Air Lease (AL) came out with quarterly earnings of $1.23 per share, missing the Zacks Consensus Estimate of $1.56 per share. This compares to earnings of $1.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -21.15%. A quarter ago, it was expected that this company that leases planes to airlines would post earnings of $1.49 per share when it actually produced earnings of $1.31, delivering a surprise of -12.08%.Over the last fo ...

Part I [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Air Lease Corporation's unaudited consolidated financial statements as of June 30, 2024, covering balance sheets, income, equity, and cash flows with detailed notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$31.02 billion** as of June 30, 2024, from **$30.45 billion** at year-end 2023, driven by flight equipment growth, with liabilities and equity also rising Consolidated Balance Sheet Summary | Balance Sheet Item | June 30, 2024 (in billions) | December 31, 2023 (in billions) | | :--- | :--- | :--- | | **Total Assets** | **$31.02** | **$30.45** | | Flight equipment subject to operating leases, net | $26.79 | $26.23 | | **Total Liabilities** | **$23.71** | **$23.29** | | Debt financing, net | $19.68 | $19.18 | | **Total Shareholders' Equity** | **$7.31** | **$7.16** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2024 total revenues slightly decreased to **$667.3 million**, with net income declining to **$90.4 million** due to higher interest expenses, while H1 2024 revenues increased to **$1.33 billion** with a net income decrease to **$210.8 million** Consolidated Statements of Income - Q2 Comparison | Metric | Q2 2024 (in millions) | Q2 2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $667.3 | $672.9 | -0.8% | | Interest Expense | $203.3 | $185.8 | +9.4% | | Net Income | $102.9 | $132.4 | -22.2% | | Diluted EPS | $0.81 | $1.10 | -26.4% | Consolidated Statements of Income - H1 Comparison | Metric | H1 2024 (in billions) | H1 2023 (in billions) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1.33 | $1.31 | +1.6% | | Interest Expense | $0.398 | $0.351 | +13.5% | | Net Income | $0.211 | $0.261 | -19.3% | | Diluted EPS | $1.68 | $2.16 | -22.2% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$785.1 million** for H1 2024, while financing activities significantly increased to **$612.8 million** due to higher debt proceeds, resulting in a net cash decrease Consolidated Statements of Cash Flows Summary | Cash Flow Activity (Six Months Ended June 30) | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $785.1 | $880.9 | | Net cash used in investing activities | ($1,406.8) | ($1,415.5) | | Net cash provided by financing activities | $612.8 | $335.0 | | **Net decrease in cash** | **($8.8)** | **($199.6)** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes provide context on the company's fleet, debt structure, aircraft commitments, and ongoing litigation regarding Russian-detained aircraft - As of June 30, 2024, the company owned **474 aircraft**, managed **67 aircraft**, and had **307 aircraft** on order from manufacturers[25](index=25&type=chunk) - Total debt financing increased to **$19.9 billion** as of June 30, 2024, from **$19.4 billion** at year-end 2023, with unsecured debt comprising the vast majority[31](index=31&type=chunk) - The company has commitments to purchase **307 aircraft** through 2029, with an estimated aggregate commitment of **$19.9 billion**, though deliveries face ongoing delays from manufacturers[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - The company is pursuing legal action against insurers to recover losses for aircraft detained in Russia, for which a **$771.5 million** write-off was recorded in 2022, with a California trial set for April 17, 2025[41](index=41&type=chunk)[43](index=43&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2024 performance, noting fleet growth to **$26.8 billion** but declining revenues and net income due to aircraft sales and higher interest expenses, while maintaining strong liquidity and a robust order book despite delivery delays [Our Fleet](index=23&type=section&id=Our%20Fleet) As of June 30, 2024, the owned fleet comprised **474 aircraft** with a net book value of **$26.8 billion**, a weighted average age of **4.7 years**, and **307 aircraft** on order, facing significant delivery delays Fleet Portfolio Metrics | Portfolio Metrics | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net book value of flight equipment | $26.8 billion | $26.2 billion | | Weighted-average fleet age | 4.7 years | 4.6 years | | Weighted-average remaining lease term | 6.9 years | 7.0 years | | Owned fleet (count) | 474 | 463 | | Aircraft on order (count) | 307 | 334 | - The company has contractual commitments to acquire **307 new aircraft** for delivery through 2029, but expects significant delays from manufacturers, with expected deliveries for H2 2024 at **35 aircraft** versus **50 contractual**[102](index=102&type=chunk)[104](index=104&type=chunk)[107](index=107&type=chunk) - As of August 1, 2024, **100%** of aircraft delivering through 2025 and **88.3%** of aircraft delivering in 2026 are placed on long-term leases[114](index=114&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q2 2024 with **$8.2 billion** in available liquidity and **$19.9 billion** in total debt, with a composite cost of funds of **3.99%**, maintaining investment-grade credit ratings - Total available liquidity was **$8.2 billion**, comprising **$0.5 billion** in unrestricted cash and **$7.7 billion** available under the unsecured revolving credit facility[125](index=125&type=chunk) Debt Metrics | Debt Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Debt Outstanding | $19.9 billion | $19.4 billion | | Percentage of fixed-rate debt | 88.3% | 84.7% | | Percentage of unsecured debt | 98.5% | 98.4% | | Composite interest rate | 3.99% | 3.77% | - The company maintains investment-grade credit ratings from all three major agencies: **A- (Stable)** from Kroll, **BBB (Stable)** from S&P, and **BBB (Stable)** from Fitch[153](index=153&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q2 2024 rental revenue slightly decreased to **$609.5 million**, while interest expense rose to **$203.3 million**, leading to a decline in net income to **$90.4 million** - **Q2 2024 vs Q2 2023:** - **Rental Revenue:** Decreased slightly to **$609.5 million** from **$611.7 million**, impacted by sales of older, higher-yield aircraft and a **$12.8 million** decline in end-of-lease revenue[160](index=160&type=chunk)[161](index=161&type=chunk) - **Aircraft Sales Revenue:** Decreased to **$57.8 million** from **$61.2 million**, with gains from sales falling to **$39.7 million** from **$44.6 million**[162](index=162&type=chunk) - **Interest Expense:** Increased to **$203.3 million** from **$185.8 million** due to a higher composite cost of funds and increased debt[166](index=166&type=chunk) - **Net Income:** Decreased to **$90.4 million** from **$122.0 million**[166](index=166&type=chunk) - **H1 2024 vs H1 2023:** - **Rental Revenue:** Remained flat at **$1.2 billion**, with fleet growth offset by lower lease yields on new aircraft and a **$33.5 million** decline in end-of-lease revenue[169](index=169&type=chunk)[170](index=170&type=chunk) - **Aircraft Sales Revenue:** Increased to **$106.8 million** from **$79.5 million**, driven by higher gains from aircraft sales[171](index=171&type=chunk) - **Interest Expense:** Increased significantly to **$398.0 million** from **$350.5 million**[176](index=176&type=chunk) - **Net Income:** Decreased to **$187.9 million** from **$240.3 million**[176](index=176&type=chunk) Non-GAAP Adjusted Financial Metrics | Non-GAAP Metric | Q2 2024 (in millions) | Q2 2023 (in millions) | | :--- | :--- | :--- | | Adjusted net income before income taxes | $137.4 | $175.9 | | Adjusted diluted EPS before income taxes | $1.23 | $1.58 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk from its **$2.3 billion** floating-rate debt and foreign exchange risk, primarily impacting foreign customers' ability to pay in U.S. dollars - The company has **$2.3 billion** in floating-rate debt outstanding; a hypothetical **1.0%** increase in rates would result in an additional annual interest expense of approximately **$23.2 million**[182](index=182&type=chunk) - Foreign exchange risk is limited as most contracts are U.S. dollar-denominated, but over **95%** of revenues from foreign customers could be affected by local currency depreciation impacting their ability to make USD payments[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2024, the company's Certifying Officers concluded that disclosure controls and procedures were effective[188](index=188&type=chunk) - No material changes occurred in the internal control over financial reporting during the quarter ended June 30, 2024[189](index=189&type=chunk) Part II [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is engaged in litigation to recover losses for aircraft detained in Russia, with a California trial set for April 17, 2025, and does not expect a material adverse effect as assets were fully written off - The company filed a lawsuit in California against its aviation insurance carriers for losses related to aircraft detained in Russia, with a trial date set for **April 17, 2025**[191](index=191&type=chunk) - In January 2024, a separate lawsuit was filed in England against the Russian airlines' insurers and reinsurers seeking recovery under the airlines' policies[192](index=192&type=chunk) - The company does not believe these legal matters will have a material adverse effect on its financial condition, as the related aircraft were fully written-off in **2022**[193](index=193&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported compared to the Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes in risk factors were reported compared to the Annual Report on Form 10-K for the year ended December 31, 2023[195](index=195&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=45&type=section&id=Other%20Items%20%28Items%202%2C%203%2C%204%2C%205%2C%206%29) This section covers standard disclosures, reporting no unregistered sales of equity securities, no defaults on senior securities, no mine safety disclosures, and lists exhibits filed with the report - The company reported 'None' for Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), and Item 4 (Mine Safety Disclosures)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) - Item 6 lists the exhibits filed with the Form 10-Q, including amendments to purchase agreements with Airbus and required officer certifications[202](index=202&type=chunk)[203](index=203&type=chunk)

Exhibit 99.1 Air Lease Corporation Announces Second Quarter 2024 Results Los Angeles, California, August 1, 2024 — Air Lease Corporation (ALC) (NYSE: AL) announces financial results for the three and six months ended June 30, 2024. "We continue to feel the effects of ongoing delays from the aircraft and engine manufacturers. We remain confident and optimistic about the value of our fleet, as seen through our aircraft sales initiatives. There is significant value in our orderbook based on our view of long- t ...

Air Lease Corporation (AL) provided an update on its aircraft investments, sales and significant financing activities occurring in the second quarter of 2024.As of Jun 30, 2024, Air Lease’s fleet included 474 owned aircraft and 67 managed aircraft. By the end of the second quarter of 2024, AL had commitments to purchase 307 aircraft from Boeing and Airbus for delivery through 2029.The company had already delivered 13 new aircraft from its order book, which comprises two Airbus A220s, five Airbus A321neos, o ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fun ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, July 9:Carvana Co. (CVNA) : Thise-commerce platform provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.5% over the last 60 days.Carvana's shares gained 51.9% over the last three months compared with the S&P 500’s advanced of 8.1%. The company possesses a Momentum Score of B.Air Lease Corporation (AL) : This aircraft leasing company has a Zac ...

Core Viewpoint - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment based on recent earnings estimate increases [1]. Company Summaries - **Carvana Co. (CVNA)**: The e-commerce platform provider has experienced a 55.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1]. - **Entrada Therapeutics, Inc. (TRDA)**: This biotechnology company has seen a significant 91.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1]. - **Bumble Inc. (BMBL)**: The online dating and social networking platform provider has had a 30.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1]. - **American Public Education, Inc. (APEI)**: This educational provider has seen a 38.5% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1]. - **Air Lease Corporation (AL)**: The aircraft leasing company has experienced a 5.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1].

Here are three stocks with buy rank and strong value characteristics for investors to consider today, July 9:Air Lease Corporation (AL) : This aircraft leasing company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.9% over the last 60 days.Air Lease Corporation has a price-to-earnings ratio (P/E) of 6.77 compared with 15.00 for the industry. The company possesses a Value Score of A.Bumble Inc. (BMBL) : This online dating and social networki ...

Air Lease Corporation (AL) performed well in the past year and has the potential to sustain the momentum in the future.Let’s look at the factors why investors should retain this stock.Factors Favoring Air LeaseAir Lease's top line is benefiting from the continuous growth in its fleet and an increase in sales activity. In the first quarter of 2024, AL's top line improved 4.27% year over year. As of Mar 31, 2024, Air Lease’s fleet included 472 owned aircraft and 73 managed aircraft, and it had commitments to ...