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Industrial Distributors Stocks Q1 Recap: Benchmarking Air Lease (NYSE:AL)


Radek Strnad /
2024/07/09 3:32 am EDT

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Air Lease (NYSE:AL) and its peers.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Distributors that boast a reliable selection of products–everything from hardhats and fasteners for jet engines to ceiling systems–and quickly deliver goods to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to better interact with customers. Additionally, distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 28 industrial distributors stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.4%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and industrial distributors stocks have had a rough stretch, with share prices down 7% on average since the previous earnings results.

Air Lease (NYSE:AL)

Established by a founder of Century City in Los Angeles, Air Lease Corporation (NYSE:AL) provides aircraft leasing and financing solutions to airlines worldwide.

Air Lease reported revenues of $663.3 million, up 4.3% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company, with revenue and EPS falling below expectations.

Air Lease Total Revenue

The stock is down 7.6% since the results and currently trades at $47.64.

Is now the time to buy Air Lease? Access our full analysis of the earnings results here, it's free.

Titan Machinery (NASDAQ:TITN)

Founded in 1980, Titan Machinery (NASDAQ:TITN) is a distributor of agricultural and construction equipment across the United States and Europe.

Titan Machinery reported revenues of $628.7 million, up 10.4% year on year, falling short of analysts' expectations by 5%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.

The stock is down 34.8% since the results and currently trades at $15.1.

Read our full analysis of Titan Machinery's results here.

Custom Truck One Source (NYSE:CTOS)

Inspired by a family gas station, Custom Truck One Source (NYSE:CTOS) is a distributor of truck and heavy equipment, including sales, rentals, and custom modifications.

Custom Truck One Source reported revenues of $411.3 million, down 9% year on year, falling short of analysts' expectations by 9.8%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Custom Truck One Source had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 14.1% since the results and currently trades at $4.21.

Read our full, actionable report on Custom Truck One Source here, it's free.

FTAI Aviation (NASDAQ:FTAI)

With a focus on the CFM56 engine that powers Boeing and Airbus’s aircrafts, FTAI Aviation (NASDAQ:FTAI) provides aircraft and engine leasing as well as the maintenance and repair of these products.

FTAI Aviation reported revenues of $326.7 million, up 11.6% year on year, surpassing analysts' expectations by 7.9%. It was a strong quarter for the company, with revenue exceeding analysts' expectations and significant improvement in its gross margin.

The stock is up 46.3% since the results and currently trades at $107.28.

Read our full, actionable report on FTAI Aviation here, it's free.

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