Aercap (NYSE:AER) Reaches New 1-Year High on Earnings Beat

Key Points

• AerCap beat quarterly expectations, reporting $5.14 in EPS versus the $4.14 consensus and revenue of $2.22 billion, up 14.9% year over year. Shares reached a new 52-week high of $156.33.
• The company authorized a $1 billion share repurchase program, allowing it to buy back up to 4.3% of outstanding shares.
• Analyst sentiment remains positive, with the stock carrying an overall “Buy” rating and an average price target of $168.67; institutional investors own 96.42% of shares.

Shares of Aercap Holdings N.V. (NYSE:AER - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $156.33 and last traded at $150.9510, with a volume of 139222 shares trading hands. The stock had previously closed at $154.09.

The financial services provider reported $5.14 earnings per share for the quarter, beating analysts' consensus estimates of $4.14 by $1.00. Aercap had a return on equity of 16.01% and a net margin of 45.22%.The company had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.10 billion. During the same quarter in the previous year, the company earned $2.83 EPS. The firm's revenue for the quarter was up 14.9% compared to the same quarter last year. Aercap has set its FY 2026 guidance at 16.800-16.800 EPS.

Aercap declared that its board has authorized a share buyback program on Wednesday, April 29th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 4.3% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms have commented on AER. Morgan Stanley decreased their target price on Aercap from $160.00 to $155.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 30th. Citigroup assumed coverage on shares of Aercap in a research note on Monday, July 20th. They set a "buy" rating and a $173.00 price objective on the stock. Weiss Ratings raised Aercap from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Wednesday, July 8th. Susquehanna lifted their price target on shares of Aercap from $170.00 to $176.00 and gave the company a "positive" rating in a report on Tuesday, July 7th. Finally, Truist Financial lifted their price objective on Aercap from $161.00 to $175.00 and gave the company a "buy" rating in a research note on Wednesday, July 8th. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $168.67.

Hedge Funds Weigh In On Aercap

Several institutional investors and hedge funds have recently made changes to their positions in AER. Groupe la Francaise boosted its stake in Aercap by 221.4% during the 1st quarter. Groupe la Francaise now owns 180 shares of the financial services provider's stock valued at $25,000 after acquiring an additional 124 shares during the last quarter. Harbor Capital Advisors Inc. acquired a new position in Aercap in the fourth quarter valued at approximately $27,000. Greenline Wealth Management LLC acquired a new position in Aercap during the 4th quarter valued at approximately $30,000. Advisory Services Network LLC bought a new position in shares of Aercap during the third quarter worth about $35,000. Finally, Cedar Mountain Advisors LLC bought a new position in Aercap in the 1st quarter worth about $44,000. 96.42% of the stock is currently owned by hedge funds and other institutional investors.

Aercap Price Performance

The firm has a market capitalization of $25.12 billion, a P/E ratio of 6.60, a price-to-earnings-growth ratio of 1.05 and a beta of 0.94. The business has a fifty day moving average of $144.39 and a 200-day moving average of $143.41. The company has a debt-to-equity ratio of 2.34, a quick ratio of 0.24 and a current ratio of 0.24.

Aercap Company Profile

AerCap Holdings N.V. NYSE: AER is a global aircraft leasing and aviation finance company that acquires, leases, sells and manages commercial aircraft and engines. Its core services include operating leases, finance leases, sale-and-leaseback transactions, aircraft trading and remarketing, and asset management for airline customers. The company also provides related commercial and technical support services designed to optimize fleet utilization and residual values over the life cycle of aircraft and engines.

Operating with a broad global footprint, AerCap serves airlines and other aviation customers across North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.

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