AL - Embedded Expectations Analysis - 2018 07 20
Air Lease Corp. (AL:USA) currently trades near historical averages relative toUAFRS-based (Uniform) Earnings, with a 21.6x Uniform P/E. Markets are doubtful that the company can sustain returns of 5%. Additionally, management may share similar concerns, as while they are confident they can operate in a volatile environment, they may be worried about the success of their new strategy to purchase used aircraft, and about their overall outlook
Management is confident in their ability to manage the business effectively despite a volatile macro outlook for the industry. Additionally, management appeared confident in their 737-800 fleet demand, as well as the boost in profit due to the new tax structure. However, management may have concerns about the outlook for their A320-321 models, and in their new strategy of buying newer-used aircraft. Additionally, management may be concerned about their Q1 results and sustainability going forward in an unpredictable macro environment
Air Lease is an aircraft leasing company. The company is engaged in purchasing new commercial jet transport aircraft directly from aircraft manufacturers, such as The Boeing Company and Airbus S.A.S., and leasing those aircraft to airlines. In addition to its leasing activities, the company sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, airlines and other investors. The company also provides fleet management services to investors and owners of aircraft portfolios. The company provides aircraft to airline customers in Asia, the Pacific Rim, Latin America, the Middle East, Europe, Africa, and North America.
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