AerSale reports Q2 adjusted EPS (3c), consensus 11c

Reports Q2 revenue $69.3M, consensus $86.98M. Nicolas Finazzo, AerSale’s CEO, said, “As noted in our first quarter report, second quarter volume was meaningfully lower than the second quarter of 2022. This is entirely the result of fewer flight equipment sales, which fluctuate significantly from quarter to quarter. Commercial demand was strong during the period and our core business has continued to grow with greater demand for used serviceable material and our maintenance, repair and overhaul offerings. We are reducing full-year expectations for our 757 program, as the freight market has softened in response to higher interest rates and tightening economic conditions, which have eased demand for consumer products. This adds some uncertainty to the timing and type of monetization of these assets, as we deploy this feedstock to the highest potential rate of return using our multi-dimensional value extraction model, which includes flight equipment sales, lease, and USM. Looking forward, we anticipate the second quarter to be the trough quarter as we begin to see the benefits of the robust feedstock already purchased or in the pipeline exceeding $200M year-to-date, the monetization of post-conversion 757s, and the FAA Supplemental Type Certification of AerAware, our Enhanced Flight Vision System for the Boeing 737NG series of aircraft.”