ATSG Gears Up to Report Q3 Earnings: What's in the Offing?

Core Viewpoint - Air Transport Services Group (ATSG) is expected to report its third-quarter 2024 results on November 8, with mixed earnings history and flat earnings estimates for the upcoming quarter [1][4]. Financial Performance - The Zacks Consensus Estimate for ATSG's revenues in the upcoming quarter is $509.8 million, reflecting a 4.4% increase from the third quarter of 2023 [2]. - The estimate for ACMI (aircraft, crew, maintenance, and insurance) Services indicates a 4.2% quarter-over-quarter increase, while cargo aircraft management (CAM) is anticipated to generate $110.9 million [2]. - ATSG's Q2 earnings were 19 cents per share, surpassing the Zacks Consensus Estimate of 16 cents but showing a significant year-over-year decline of 66.7% [5]. - Customer revenues for Q2 were $488.4 million, missing the Zacks Consensus Estimate of $512.3 million and falling 7.7% year over year [5]. Segment Performance - ATSG operates primarily through two segments: CAM and ACMI Services. Revenues from ACMI Services decreased by 7.7% year over year to $338.2 million, while revenues from CAM and other operations declined by 6.2% and 11.9% to $104.5 million and $97.64 million, respectively [6]. Cost Management - The company's cost-cutting initiatives are expected to positively impact its bottom line in the upcoming quarter [3]. Earnings Prediction Model - The current model does not predict an earnings beat for ATSG, with an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [4].