Air Transport Services Group (NASDAQ: ATSG) reported Q2 EPS of $0.28, in-line with the analyst estimate of $0.28. Revenue for the quarter came in at $203.6 million versus the consensus estimate of $209.14 million.

GUIDANCE:

ATSG continues to expect Adjusted EBITDA from Continuing Operations for 2018 of approximately $310 million, up 16 percent from 2017, as its aircraft leasing, airline operations, and MRO services are expected to deliver stronger results in the second half of 2018.

"At this point, our progress toward our 2018 targets is ahead of our plan," Hete said. "Five of the ten additional 767s we originally targeted for deployment this year are in service, and we expect two more to be delivered in the third quarter and the rest in the fourth. We have continued strong interest from customers for the five 767s we expect to have in process as we enter 2019, including multi-aircraft placements."

ATSG also continues to project 2018 capital expenditures of about $300 million. In addition to capital expenditures for aircraft and related freighter modification costs, 2018 outlays includes costs for the design and certification of narrow-body freighter and combi variants of the Next Gen Boeing 737-700. ATSG’s earnings continue to reflect non-operating charges for the development of a narrow-body freighter version of the midsize Airbus A321-200 via a joint venture. The 737-700 project is due for completion and certification later this year. The Airbus joint venture project is expected to be completed in late 2019.

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