Follow AerCap to never miss an important update.
AerCap reported high activity for the quarter ending in September, signing dozens of new lease agreements for both widebody and narrowbody planes. The company also sold 46 assets, including 32 aircraft, which is a key part of its strategy to cycle out older equipment and book profits on the sales.
This steady volume of deals shows that demand for planes remains high even as manufacturers struggle to build new ones. For a long-term owner, this confirms that AerCap's massive fleet is in high rotation and that the company is successfully moving assets into the hands of airlines at a steady clip.
Source: PRNewsWire
Truist Financial set its price target for AerCap at $180. This is slightly above the average target of $178 among analysts who follow the stock. Since there was no change to the firm's rating, this is a routine update that aligns with the general view that the stock is currently priced below its long-term value.
Source: Truist Financial
AerCap's subsidiary priced an offering of 1.5 billion dollars in senior notes, which are a type of debt that gets paid back before other obligations. This is a routine move for a company that buys billions of dollars in aircraft and needs to constantly manage its borrowing.
While taking on more debt sounds negative, AerCap uses its massive scale to borrow at lower rates than most rivals. This capital allows it to keep its order book full and its fleet young, which is the core engine of its profit growth.
Source: PRNewsWire
Management consistently sets a bar they can clear, beating their own profit targets for eight straight quarters as the business outruns analyst expectations.
| Expectation | |
|---|---|
| EPS | $4.35 |
| Revenue | $2.10B |