Why Is Air Transport Services (ATSG) Down 11.1% Since Last Earnings Report?

Core Viewpoint - Air Transport Services (ATSG) has experienced a decline in share price by approximately 11.1% since its last earnings report, underperforming the S&P 500, raising questions about future performance leading up to the next earnings release [1] Financial Performance - ATSG reported quarterly earnings of 16 cents per share, exceeding the Zacks Consensus Estimate of 13 cents, but representing a significant year-over-year decline of 55.6% [2] - Customer revenues reached $485.5 million, slightly above the Zacks Consensus Estimate of $484.2 million, but down 3.1% year-over-year [2] - Revenues from ACMI Services decreased by 3.1% year-over-year to $323.8 million, while revenues from CAM and other operations fell by 5.8% to $105.5 million and 1.9% to $109 million, respectively [2] - Adjusted EBITDA declined by 7.7% year-over-year to $127.3 million, and operating cash flow dropped from $216.4 million to $126.4 million [2] - Adjusted free cash flow was reported at $96 million, down from $162.1 million in the previous year [2] Future Outlook - ATSG has revised its adjusted EBITDA outlook to nearly $516 million, up from the previous estimate of $506 million, due to expected increased flying opportunities from 10 Amazon-provided 767-300s [3] - The company anticipates adjusted earnings per share in the range of 55-80 cents for 2024, with capital spending projected at $410 million [3] Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 14.87% over the past month [4] Investment Scores - ATSG holds a strong Growth Score of A, a Momentum Score of B, and an overall VGM Score of A, placing it in the top 20% for value investment strategy [5] General Outlook - The overall trend in estimates for ATSG has been downward, indicating a potential in-line return from the stock in the coming months, with a Zacks Rank of 3 (Hold) [6]