Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at FTAI Aviation (NASDAQ:FTAI) and its peers.
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Transportation parts distributors that boast reliable selection in sometimes specialized areas combined and quickly deliver products to customers can benefit from this theme. Additionally, distributors who earn meaningful revenue streams from aftermarket products can enjoy more steady top-line trends and higher margins. But like the broader industrials sector, transportation parts distributors are also at the whim of economic cycles that impact capital spending, transportation volumes, and demand for discretionary parts and components.
The 4 vehicle parts distributors stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.7%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but vehicle parts distributors stocks have performed well, with the share prices up 15.1% on average since the previous earnings results.
FTAI Aviation (NASDAQ:FTAI) With a focus on the CFM56 engine that powers Boeing (NYSE:BA) and Airbus’s aircrafts, FTAI Aviation (NASDAQ:FTAI) provides aircraft and engine leasing as well as the maintenance and repair of these products.
FTAI Aviation reported revenues of $326.7 million, up 11.6% year on year, exceeding analysts' expectations by 7.9%. Overall, it was a mixed quarter for the company. FTAI Aviation blew past analysts' operating margin expectations. On the other hand, its EPS missed.
FTAI Aviation pulled off the biggest analyst estimates beat of the whole group. The stock is up 47.3% since reporting and currently trades at $108.
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Best Q1: GATX (NYSE:GATX) Originally founded to ship beer, GATX (NYSE:GATX) provides leasing and management services for railcars and other transportation assets globally.
GATX reported revenues of $379.9 million, up 12.1% year on year, outperforming analysts' expectations by 1%. It was a very strong quarter for the company with a solid beat of analysts' earnings estimates.
GATX delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 15.5% since reporting. It currently trades at $150.26.
Weakest Q1: Air Lease (NYSE:AL) Established by a founder of Century City in Los Angeles, Air Lease Corporation (NYSE:AL) provides aircraft leasing and financing solutions to airlines worldwide.
Air Lease reported revenues of $663.3 million, up 4.3% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Air Lease had the weakest performance against analyst estimates in the group. As expected, the stock is down 3.3% since the results and currently trades at $49.88.
Rush Enterprises (NASDAQ:RUSHA) Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.
Rush Enterprises reported revenues of $1.87 billion, down 2.1% year on year, in line with analysts' expectations. Zooming out, it was an ok quarter for the company with a solid beat of analysts' earnings estimates but a miss of analysts' Vehicles revenue estimates.
Rush Enterprises had the slowest revenue growth among its peers. The stock is up 1% since reporting and currently trades at $49.70.
This content was originally published on Stock Story
