Aersale Corp Down 19.73% To $11.82 After Earnings Miss

Wednesday, August 9, 2023 - Aersale Corp (ASLE) reported downside earnings and revenues today.

Aersale Corp's earnings came in at an EPS loss of $0.03 per share, 127% lower than estimates for an EPS of $0.11 per share. The firm's earnings are down 105% since reporting $0.56 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $87 million. The Industrials company missed on those expectations for its second quarter with revenue of $69.3 million, a negative revenue surprise of $17.7 million (20%). The firm managed negative 50% growth year-over-year due to Aersale Corp reporting quarterly revenue of $139.6 million in its year-ago quarter. Aersale Corp achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 19.73% to $11.82 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 29. Meanwhile, the average Wall Street analyst rated the stock a Buy.

AerSale Corp is an integrated, diversified global leader in aviation aftermarket products and services. It specializes in the sale, lease, and exchange of used aircraft, engines, and components, in addition to providing a broad range of maintenance, repair, and overhaul, and engineering services for commercial aircraft and components. The company operating segment includes Asset Management Solutions and TechOps. It generates maximum revenue from the Asset Management Solutions segment.