Air Transport Services Group (NASDAQ:ATSG) shares jumped sharply in the last five years. This is supported by solid growth in the companies revenue and earnings. ATSG shares rose 52% in the last twelve months, extending the five-year rally to 356%. ATSG stock looks like a solid bet for investors considering the strong momentum in its financial numbers.
ATSG stock currently trades around the level of $26 – with the market capitalization of $1.56 billion. The stock has the 52-week trading range of $15 to $27.
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The company has topped revenue and earnings estimates for the fourth quarter of FY2017 by $51 million and $0.03 per share, respectively.
Air Transport Services Group is the leading provider of medium wide-body aircraft leasing, air cargo transportation, and related services.
ATSG airlines, leasing, logistics, and maintenance businesses posted double-digit revenue growth in the latest quarter. Its fourth quarter revenue increased almost 45% from the year-ago period, while full-year revenue surged 39% year over year to $1.1 billion.
The company has also been turning strong revenue growth into big profits. Its fourth quarter Adjusted EBITDA grew 43% Y/Y to $80.8 million and full-year 2017 adjusted EBITDA up 27 percent to $267.9 million.
Joe Hete, President and Chief Executive Officer of ATSG, said, “With our attractive asset mix expanding into the narrow-body sector, strong cash-flow generation, and lower federal tax rates, we are well positioned for continued growth in the future.”
Strong Outlook and Share Buybacks Supports the Uptrend
The company expects to extend its momentum into fiscal 2018. It believes that the increasing demand from e-commerce retailers to satisfy their customers’ ‘need for speed’ would continue to enhance revenue for its unique blend of aircraft assets and services. Air Transport Services Group expects fiscal 2018 Adjusted EBITDA to exceed the previous year numbers by 16%.
ATSG management has also been working on the share buyback program to support the stock price. The company repurchased almost $11 million of outstanding stock last year, while its directors have expanded the buyback program from $100 to $150 million.
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