Air Transport Services (US:ATSG) ZACKS·2025-03-04 21:01Core Insights - Air Transport Services Group, Inc. (ATSG) reported strong fourth-quarter 2024 results, with earnings per share (EPS) of 40 cents exceeding the Zacks Consensus Estimate of 35 cents, marking over 100% year-over-year growth [1] - Customer revenues reached $516.8 million, surpassing the Zacks Consensus Estimate of $512.8 million, although total revenues saw a slight decline of 0.1% year over year [2] Business Developments - ATSG has entered into an all-cash acquisition agreement with Stonepeak, valued at $3.1 billion, expected to close in the first half of 2025, pending regulatory approvals [3] - The CEO highlighted the company's strong performance in the CAM leasing business, with the placement of the ninth converted 767-300 freighter in November [4] Financial Performance - ATSG's revenues from Cargo Aircraft Management (CAM) operations fell by 12.7% year over year to $111.56 million, while ACMI Services revenues decreased by 11.3% to $372.06 million [6] - Total operating expenses decreased by 1.1% year over year to $474.99 million, and adjusted EBITDA grew by 24.9% year over year to $162.23 million [7] - The company ended the quarter with cash and equivalents of $60.57 million, up from $44.87 million in the previous quarter, and generated $133.73 million in cash from operating activities [8] Market Position - ATSG holds a Zacks Rank 3 (Hold) and has seen its stock price increase by 40.7% over the past six months, outperforming the industry, which experienced a loss of 7.8% [9]