Why Is Air Lease (AL) Up 0.7% Since Last Earnings Report?

Core Viewpoint - Air Lease's recent earnings report indicates a mixed performance, with earnings per share missing estimates but showing year-over-year growth in total rental revenue from flight equipment [2][3]. Financial Performance - Air Lease reported Q3 2025 earnings per share of $1.29, missing the Zacks Consensus Estimate of $1.60, but improved 3.2% year over year [2]. - Total revenues reached $725.4 million, falling short of the Zacks Consensus Estimate of $737.3 million, yet grew 5.1% year over year [2]. - Revenues from the rental of flight equipment increased by 9% year over year to $681 million, driven by fleet growth and higher portfolio lease yield [3]. - Revenues from aircraft sales and other sources decreased by 32% year over year to $44 million due to lower sales activity [4]. - Operating expenses rose by 7.3% year over year to $600.9 million [4]. Asset and Debt Position - As of September 30, 2025, Air Lease owned 503 aircraft with a net book value of $29.5 billion, and the total fleet size was 781 [5]. - Cash and cash equivalents stood at $452.21 million, slightly down from $454.80 million in the previous quarter [6]. - Debt financing amounted to $20.2 billion, a slight decrease from $20.3 billion in the prior quarter [6]. Market Position and Outlook - Air Lease has a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [9]. - The company has a subpar Growth Score of D, but a strong Momentum Score of A, with an aggregate VGM Score of B [8]. - In comparison, Ryder, a peer in the same industry, reported a slight revenue increase and has a Zacks Rank of 4 (Sell) as well [10][12].