Why AerSale Stock Is Losing Altitude Today
It is a booming market for commercial aerospace sales, but AerSale (NASDAQ: ASLE) wasn't able to capitalize on the momentum. Shares of AerSale traded down about 11% as of 10:15 a.m. ET Thursday after the company missed on earnings and lowered full-year guidance.
AerSale is a seller and lessor of used aircraft, engines, and components, and also provides a range of maintenance, repair, and overhaul services to aviation customers. A strong summer for airlines has led to surging demand for aerospace supplies, but the cargo market, which is vital to AerSale's success, has not been so robust.
The company reported third-quarter adjusted earnings of $0.03 per share on revenue of $92.5 million, falling short of Wall Street expectations for a $0.21 per-share profit on sales of $115 million. CEO Nicolas Finazzo said that volumes improved in the third quarter, but the softening air cargo market is making it harder for AerSale to sell 757 airframes converted for freighter use.
Source Fool.com
