Air Transport Services (US:ATSG) ZACKS·2024-11-11 18:41Core Insights - Air Transport Services Group, Inc. (ATSG) reported disappointing third-quarter 2024 results, with earnings per share (EPS) of 13 cents falling short of the Zacks Consensus Estimate of 19 cents, representing a year-over-year decline of 59.4% [1] - Customer revenues of $471.3 million also missed the Zacks Consensus Estimate of $507.9 million, marking a 9.9% decrease year over year [2] - ATSG announced a deal with Stonepeak for an all-cash acquisition valued at $3.1 billion, with common stockholders set to receive $22.50 per share [3] Financial Performance - ATSG's revenues from Cargo Aircraft Management (CAM) grew by 2.5% year over year to $112.46 million, while revenues from ACMI Services and other operations decreased by 11.8% and 17.5% year over year to $321.97 million and $93 million, respectively [4] - Total operating expenses decreased by 5.7% to $449.57 million, and adjusted EBITDA fell by 5.2% year over year to $129.45 million [5] - As of September 30, 2024, ATSG had cash and cash equivalents of $44.87 million, an increase from $28.71 million in the prior quarter, and long-term debt of $1.56 billion [6] Industry Comparisons - Delta Air Lines (DAL) reported third-quarter 2024 earnings of $1.50 per share, missing the Zacks Consensus Estimate of $1.56, with a year-over-year earnings decrease of 26.11% due to high labor costs [8] - DAL's revenues of $15.68 billion exceeded the Zacks Consensus Estimate of $15.37 billion, reflecting a 1.2% year-over-year increase driven by strong air travel demand [9] - J.B. Hunt Transport Services, Inc. (JBHT) reported earnings of $1.49 per share, surpassing the Zacks Consensus Estimate of $1.42 but declining 17.2% year over year [10] - United Airlines Holdings, Inc. (UAL) posted EPS of $3.33, exceeding the Zacks Consensus Estimate of $3.10, with a year-over-year earnings decrease of 8.8% [11]