Earnings results often indicate what direction a company will take in the months ahead. With Q2 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 Q2. As a group, revenues beat analysts’ consensus estimates by 7.1%.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some vehicle parts distributors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest 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 $443.6 million, up 61.7% year on year. This print exceeded analysts’ expectations by 22%. Despite the top-line beat, it was still a mixed quarter for the company.
FTAI Aviation scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 2.2% since reporting and currently trades at $52.13.
Is now the time to buy FTAI Aviation? Find out by reading the original article on StockStory, it’s free. Best Q2: 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 $2.03 billion, up 1.2% year on year, outperforming analysts’ expectations by 8.8%. It was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $52.13.
Weakest Q2: 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 $667.3 million, flat year on year, falling short of analysts’ expectations by 2.6%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Air Lease had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 4.8% since the results and currently trades at $45.45.
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 $386.7 million, up 12.7% year on year, in line with analysts’ expectations. Revenue aside, it was a weak quarter for the company with a miss of analysts’ earnings estimates and underwhelming earnings guidance for the full year.
The stock is down 5.4% since reporting and currently trades at $137.61.
This content was originally published on Stock Story
