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.

NEW YORK (

TheStreet

)

-- Aircastle

(NYSE:

AYR

) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:

  • AYR's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $102.99 million or 11.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.14%.
  • The gross profit margin for AIRCASTLE LTD is currently very high, coming in at 90.96%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.30% trails the industry average.
  • AIRCASTLE LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, AIRCASTLE LTD increased its bottom line by earning $0.47 versus $0.46 in the prior year. This year, the market expects an improvement in earnings ($0.88 versus $0.47).
  • In its most recent trading session, AYR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

Aircastle Limited acquires, leases, and sells commercial jet aircraft to airlines worldwide. The company also makes investments in various aviation assets, including debt investments secured by commercial jet aircraft. Aircastle has a market cap of $1.44 billion and is part of the services sector and diversified services industry. Shares are down 7.3% year to date as of the close of trading on Friday.

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Aircastle Ratings Report

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