NEW YORK (TheStreet) -- Shares of AerCap Holdings NV (AER) are up 4.31% to $45.48 after the aviation company announced first quarter 2014 adjusted net income was $79.9 million, compared with $68.0 million for the same period in 2013.
First quarter 2014 adjusted earnings per share were 70 cents, compared with 60 cents for the same period in 2013.
Total revenue for the quarter was $264.8 million versus $245.8 million a year ago, an 8% increase.
First quarter 2014 reported net income was $54.7 million, compared with $67.5 million for the same period in 2013.
First quarter 2014 reported basic earnings per share were 48 cents, compared with 59 cents for the same period in 2013.
The decrease in net income and earnings per share from first quarter 2013 was driven primarily by costs incurred in first quarter 2014 relating to the ILFC transaction.
The fleet utilization rate was 98.9% for quarter.
TheStreet Ratings team rates AERCAP HOLDINGS NV as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AERCAP HOLDINGS NV (AER) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AER's revenue growth has slightly outpaced the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 11.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 533.33% and other important driving factors, this stock has surged by 170.74% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for AERCAP HOLDINGS NV is currently very high, coming in at 94.19%. Regardless of AER's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AER's net profit margin of 24.61% significantly outperformed against the industry.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Trading Companies & Distributors industry and the overall market, AERCAP HOLDINGS NV's return on equity is below that of both the industry average and the S&P 500.
- The debt-to-equity ratio is very high at 2.57 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- You can view the full analysis from the report here: AER Ratings Report