Atlas Air Worldwide Holdings (AAWW) Tops Q1 EPS by 29c; Raises Outlook

Atlas Air Worldwide Holdings (NASDAQ: AAWW) reported Q1 EPS of $0.86, $0.29 better than the analyst estimate of $0.57. Revenue for the quarter came in at $590 million versus the consensus estimate of $555.82 million.

Increasing 2018 Outlook

We are increasing our outlook for 2018 to reflect our strong first-quarter results and our expectation for significant volume, revenue, and earnings growth.

With solid demand from our customers for our aircraft and services, and with the essential building blocks our strategic initiatives have set in place, we see opportunities to grow with existing customers and to add new ones.

Globally, economic activity is expanding. The airfreight market is strong, and airfreight tonnage continues to grow from record levels.

As a result, we see volumes rising approximately 19% to around 300,000 block hours in 2018, with about 75% of our hours in ACMI and the balance in Charter.

For the full year, we expect our revenue to exceed $2.5 billion, our adjusted EBITDA to increase to more than $500 million, and our adjusted net income to grow by a low- to mid-30% level compared with 2017.

We also expect our full-year 2018 adjusted income tax rate to be approximately 16%.

For the second quarter, we expect adjusted EBITDA to exceed $100 million, and adjusted net income to increase 30% to 35% compared with first-quarter 2018 adjusted net income of $23.8 million.

Aircraft maintenance expense in 2018 is expected to total approximately $320 million, mainly reflecting an increase in daily line maintenance due to the anticipated growth in block hours. Depreciation and amortization is expected to total approximately $220 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are expected to total approximately $100 to $110 million, mainly for parts and components for our fleet.

We provide guidance on an adjusted basis because we are unable to predict, with reasonable cert

For earnings history and earnings-related data on Atlas Air Worldwide Holdings (AAWW) click here.

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