DUBLIN - AerCap Holdings N.V. (NYSE: AER) reported a robust fourth quarter with earnings surpassing analyst expectations, primarily driven by a significant earnings per share (EPS) beat. The company's stock surged 5.6% in response to the positive earnings report and the announcement of a new share repurchase program.
For the fourth quarter, the global leader in aviation leasing posted an adjusted EPS of $3.11, which was $0.65 higher than the analyst consensus of $2.46. However, revenue for the quarter was slightly below expectations at $1.9 billion, compared to the consensus estimate of $1.93 billion. Despite the minor shortfall in revenue, the strong EPS performance was the primary catalyst for the stock's upward movement.
Aengus Kelly, CEO of AerCap, commented on the results, stating, "We are pleased to announce another record quarter for AerCap, completing a record year for our company across many fronts." Kelly attributed the success to the robust operating environment and positive momentum in leasing and sales of aircraft, engines, and helicopters. The company also benefited from over $600 million in insurance settlements collected during the quarter.
In addition to the quarterly achievements, AerCap announced a new $500 million share repurchase authorization, signaling confidence in the company's financial position and future prospects. This move is part of AerCap's ongoing strategy to return value to shareholders, having already returned $2.6 billion through share repurchases in 2023.
Investors reacted positively to the news, with AerCap's stock price reflecting optimism in the company's performance and strategic initiatives. The announcement of the share buyback program further bolstered market sentiment.
Looking ahead, AerCap's leadership remains confident about the company's outlook for 2024 and beyond, supported by strong demand for aircraft, engines, and helicopters. The company continues to lead the industry, as evidenced by its record net income for the full year 2023 and its robust financial position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.