Aircastle Limited (NYSE:AYR) released earnings for the fiscal year 2014 and fourth quarter reporting periods. Revenues for the fourth quarter came in at $238 million which is a 24% gain from the same quarter in 2013. Year-long revenues were $816 million, or a 16%rise over 2013. Net income was $72.8 million for the quarter and that equated to a per share earnings of 90 cents. 2014’s operating income was $100 million or an EPS of $1.25. This was another in a long string of profitable quarters for the leader in aircraft leasing.
The company showed a strong fourth quarter and was led by the upgrading of the company’s portfolio. This included $1.8 billion in acquisitions and the sale of 49 planes for $833 million. Interest reductions helped as they were lowered to 4.69%. The previous year rates were at 5.37%. The company extended its joint venture with Ontario Teachers to $545 million in assets. Aircastle Limited (NYSE:AYR) also benefited from higher maintenance revenues that were a result of the early return of aircraft from a Russian-based airline. The company also saw higher lease rentals that added $8.3 million in revenue.
In 2014 Aircastle Limited (NYSE:AYR) added 35 aircraft to its line-up for $1.8 billion. The company focused on aircraft that were less than five years-old adding longevity to the portfolio. $467 million in mid-aged aircraft were also added to the portfolio. 12 of those were acquired from a major European flag carrier. Due to the company’s strong cash position. It was able to react quickly to purchasing opportunities and capitalizes on better pricing. The company also sold 49 aircraft and added $833 million to the revenue stream. The aircraft that were sold averaged 19 years in age.
The stock went to a 52-week high and the momentum is very strong. The issue is still not over-bought and seems to have more gas left in the tank. It’s above support and has created bullish divergence in the moving averages.
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