Atlas Air Worldwide Q4 Results Surpass Estimates, Guides Q1 Revenue Above Consensus

Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) reported fourth-quarter revenue growth of 24.7% year-over-year to $1.16 billion, beating the consensus of $1.11 billion.
Volumes totaled 91,985 block hours compared with 96,079 in 4Q20. Average Utilization was 10.5 block hours per day compared to 9.9 a year ago.
The operating income increased to $263.08 million (+35.7% Y/Y), and the margin expanded by 183 bps to 22.6%. Adjusted operating margin expanded by 290 bps to 24.8%.
Adjusted EPS improved to $7.05 from $4.83 in 4Q20, beating the consensus of $6.14.
Adjusted EBITDA improved by 29.3% Y/Y to $361.76 million, and margin expanded by 111 bps to 31.1%.
Revenue Per Block Hour for Airline Operations was $12,359 (+31.1% Y/Y).
Operating expenses increased 21.8% Y/Y to $899.92 million.
Atlas Air Worldwide generated cash from operating activities of $922.98 million in FY21 compared to $1.01 billion a year ago. Free cash flow was $824.38 million.
The company’s cash and equivalents totaled $921 million at the end of the quarter.
1Q22 Outlook: Atlas Air Worldwide expects revenue of nearly $1 billion (consensus of $961.9 million) and Block hours of ~85,000.
The company expects adjusted EBITDA to be similar to the 1Q21 amount of $181.3 million and adjusted net income to match the 1Q21 amount of $72.2 million.
For FY22, the company expects aircraft maintenance expense to be similar to 2021 and depreciation and amortization to total about $300 million.
Buyback: The Board approved a new share repurchase program authorizing up to $200 million of common stock. As part of the share repurchase program, the company will enter into a $100 million accelerated share repurchase program (ASR).
Price Action: AAWW shares are trading lower by 2.25% at $77.29 on the last check Thursday.

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