AerSale Corporation (NASDAQ: ASLE) Earnings Preview: A Look into the Aviation Industry's Future
- Earnings Expectation: Analysts predict an EPS of $0.13 and revenue of approximately $89.3 million for Q1 2025.
- Financial Health: With a current ratio of 3.79 and a low debt-to-equity ratio of 0.17, AerSale demonstrates solid financial stability.
AerSale Corporation (NASDAQ:ASLE) is a key player in the aviation industry, providing a range of products and services. The company is set to release its first-quarter 2025 earnings on May 7, after the market closes. Analysts expect earnings per share (EPS) to be $0.13, with projected revenue of approximately $89.3 million.
The Zacks Consensus Estimate suggests AerSale's revenue will be $88.1 million, marking a 2.7% decline from the same quarter last year. Despite this, the EPS is expected to improve by 18.2% from the previous year's quarter. This improvement is significant, especially considering the bottom-line estimate has increased by 30% over the past 60 days.
AerSale's stock is considered a compelling buy due to its discounted valuation and solid earnings growth projections. Its price-to-sales ratio is 1.08, suggesting the market values the company at just over one times its annual sales. The enterprise value to sales ratio is 1.29, reflecting AerSale's valuation in relation to its revenue. The enterprise value to operating cash flow ratio is 39.67, which may indicate how the market values its cash-generating ability. The company maintains a low debt-to-equity ratio of 0.17, showcasing its financial stability.
AerSale's strong current ratio of 3.79 indicates good short-term financial health, with the ability to cover current liabilities with current assets. Despite a mixed earnings surprise history, missing the Zacks Consensus Estimate in two of the last four quarters, AerSale's low leverage and growth potential make it an attractive investment.
| Symbol | Price | %chg |
|---|---|---|
| LTM.SN | 21.1 | 0 |
| 003490.KS | 24150 | 0 |
| 003495.KS | 24400 | 0 |
| GIAA.JK | 68 | 0 |
Truist Downgrades AerSale to Hold, Shares Drop 4%
Truist Securities downgraded AerSale (NASDAQ:ASLE) from Buy to Hold, lowering its price target to $6 from $8 amid ongoing challenges in the used serviceable material (USM) market and limited visibility into future growth drivers. As a result, the company’s shares fell over 4% on Friday.
The firm slashed its earnings estimates for 2025 and 2026, now projecting EPS of $0.20 and $0.47, respectively—down from prior forecasts of $0.42 and $0.77. The revision reflects continued supply constraints in sourcing retired aircraft and serviceable components, a key input for AerSale’s aftermarket parts business. As fewer aircraft retire due to new production delays, pressure is mounting on USM availability, contributing to erratic revenue from whole asset sales.
Truist also expressed skepticism around the timeline and revenue potential of AerAware, AerSale’s advanced vision system product. While the firm does model for revenue contributions from AerAware in 2026, it admits confidence in those projections is low due to uncertain adoption rates.
While the $6 price target is based on a seemingly conservative 13x multiple of 2026 EPS—well below the sector average of roughly 30x—Truist argues that the valuation discount is justified by unpredictable feedstock availability and weak earnings visibility. By contrast, commercial aerospace peers are expected to post strong double-digit revenue growth, highlighting AerSale’s relative underperformance.
AerSale Corporation (NASDAQ: ASLE) Earnings Preview: A Look into the Aviation Industry's Future
- Earnings Expectation: Analysts predict an EPS of $0.13 and revenue of approximately $89.3 million for Q1 2025.
- Financial Health: With a current ratio of 3.79 and a low debt-to-equity ratio of 0.17, AerSale demonstrates solid financial stability.
AerSale Corporation (NASDAQ:ASLE) is a key player in the aviation industry, providing a range of products and services. The company is set to release its first-quarter 2025 earnings on May 7, after the market closes. Analysts expect earnings per share (EPS) to be $0.13, with projected revenue of approximately $89.3 million.
The Zacks Consensus Estimate suggests AerSale's revenue will be $88.1 million, marking a 2.7% decline from the same quarter last year. Despite this, the EPS is expected to improve by 18.2% from the previous year's quarter. This improvement is significant, especially considering the bottom-line estimate has increased by 30% over the past 60 days.
AerSale's stock is considered a compelling buy due to its discounted valuation and solid earnings growth projections. Its price-to-sales ratio is 1.08, suggesting the market values the company at just over one times its annual sales. The enterprise value to sales ratio is 1.29, reflecting AerSale's valuation in relation to its revenue. The enterprise value to operating cash flow ratio is 39.67, which may indicate how the market values its cash-generating ability. The company maintains a low debt-to-equity ratio of 0.17, showcasing its financial stability.
AerSale's strong current ratio of 3.79 indicates good short-term financial health, with the ability to cover current liabilities with current assets. Despite a mixed earnings surprise history, missing the Zacks Consensus Estimate in two of the last four quarters, AerSale's low leverage and growth potential make it an attractive investment.
