NEW YORK (TheStreet) -- Air Transport Services Group (ATSG) - Get Air Transport Services Group, Inc. Report stock is advancing 18.65% to $13.97 on heavy trading volume Wednesday afternoon after the company announced an agreement to lease aircrafts to Amazon.com (AMZN).
Amazon Fulfillment Services will lease 20 Boeing (BA) 767 freighter aircrafts that will be operated by Air Transport Services' airline carriers, ABX Air and Air Transport International.
Gateway and logistics services will be provided by LGSTX Services, another Air Transport Services subsidiary.
The Wilmington, OH-based aircraft leasing company also agreed to give Amazon warrants to acquire up to a 19.9% stake in the company for $9.73 per share over a five-year period.
Additionally, Air Transport Services reported better-than-expected 2015 fourth quarter financial results after yesterday's market close.
The company posted earnings of 23 cents per share on revenue of $181.58 million for the last three months of 2015. Analysts surveyed by Thomson Reuters had estimated earnings of 19 cents per share on $157.22 million in revenue.
So far today, 2.65 million shares of Air Transport Services have been traded, compared with its average daily volume of 252,679 shares.
Separately, Air Transport Services has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's strengths, such as revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures, and its weaknesses, including unimpressive growth in net income, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: ATSG
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.