Air cargo transportation and logistics provider Air Transport Services Group (NASDAQ:ATSG) will be announcing earnings results tomorrow after market close. Here's what investors should know.
Air Transport Services beat analysts' revenue expectations by 1.8% last quarter, reporting revenues of $488.6 million, down 2.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Is Air Transport Services a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Air Transport Services's revenue to decline 3% year on year to $513.7 million, a reversal from the 3.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Air Transport Services has missed Wall Street's revenue estimates six times over the last two years.
Looking at Air Transport Services's peers in the air freight and logistics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GXO Logistics delivered year-on-year revenue growth of 18.9%, beating analysts' expectations by 6%, and C.H. Robinson Worldwide reported revenues up 1.4%, in line with consensus estimates. C.H. Robinson Worldwide traded up 14.8% following the results.
Read our full analysis of GXO Logistics's results here and C.H. Robinson Worldwide's results here.
Investors in the air freight and logistics segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Air Transport Services is down 2.7% during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $13.65).
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