Atlas Air Worldwide Q3 Earnings Top Estimates, Sees Q4 Revenue Above Consensus

  • Atlas Air Worldwide Holdings, Inc. AAWW reported third-quarter revenue growth of 25.5% year-over-year to $1.02 billion, beating the consensus of $999.46 million.
  • Volumes totaled 90,363 block hours compared with 90,528 in 3Q20; Average Utilization was 10.2 block hours per day compared to 9.4 a year ago.
  • Revenue Per Block Hour for Airline Operations was $10,943 (+25.9% Y/Y).
  • Operating expenses increased 20.5% Y/Y in the quarter to $832.17 million.
  • The operating income increased by 54% Y/Y to $183.93 million, and the margin expanded by 338 bps to 18.1%. Adjusted operating margin expanded by 436 bps to 20.7%
  • Adjusted EPS improved to $4.88 compared to $2.84 in 3Q20, beating the consensus of $4.32.
  • Atlas Air Worldwide generated cash from operating activities year-to-date of $608.93 million compared to $782.71 million a year ago. Free cash flow of $539.35 million.
  • Adjusted EBITDA improved by 42.9% Y/Y to $280.54 million, and margin expanded by 337 bps to 27.6%.
  • The company’s cash and equivalents totaled $784.1 million at the end of the quarter.
  • Q4 Outlook: Atlas Air Worldwide expects revenue of nearly $1.1 billion (consensus of $1.04 billion) and adjusted EBITDA of about $325 million. It also anticipates adjusted net income to grow above 20% Y/Y.
  • Atlas Air expects FY21 aircraft maintenance expense to total ~$450 million and depreciation and amortization to total about $280 million. 
  • Price Action: AAWW shares are trading higher by 3.02% at $86.51 on the last check Wednesday.
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