Intraday Trade Strategies in Focus: AerCap Holdings N.V. (NYSE:AER), Intrepid Potash, Inc. (NYSE:IPI)

On Tuesday, Shares of AerCap Holdings N.V.(NYSE:AER) showed 0.00% to $49.57. The company stated $6.85earnings per share (EPS) for the trailing twelve months. Earnings per share (EPS) are the portion of a company’s profit allocated to each outstanding share of common stock. Growth in EPS is an important measure of administration performance because it shows how much money the company is making for its shareholders, not only because of changes in profit, but also after all the effects of issuance of new shares (this is especially important when the growth comes as a result of acquisition). The Company’s Market capitalization is $7.33BB with the total Outstanding Shares of 147.93MM. The Company’s price to free cash flow for trailing twelve months is N/A. Its quick ratio for most recent quarter is N/A along with current ratio for most recent quarter of N/A, whereas Total long term debt to equity ratio for most recent quarter is 3.29.

AerCap Holdings N.V. (AER) Reported Financial Results for the Third Quarter 2018 and Announces New Share Repurchase Program.

Highlights

  • 87 aircraft transactions executed in the third quarter of 2018, counting 20 widebody transactions.
  • Over 90% of new aircraft deliveries through 2020 leased.
  • 6.6 years average age of owned fleet and 7.1 years average remaining lease term.
  • 99.4% fleet utilization rate for the third quarter of 2018.
  • $11.0B of available liquidity and adjusted debt/equity ratio of 2.7 to 1.
  • Book value per share of $61.24, a boost of 11% since September 30, 2017.
  • Repurchased 1.5M shares in the third quarter of 2018 for $87M.
  • New $200M share repurchase program authorized, which will run through March 31, 2019.

Aengus Kelly, CEO of AerCap, commented: “I am happy to declare another strong quarter for AerCap with earnings per share of $1.79 and 11% growth in book value per share year over year. This consistent profitability shows the resilience and consistency of our platform. We continue to actively place our new orders and look forward to delivering over 200 new aircraft by the end of 2020 to drive the continued success of the company.”

Third Quarter 2018 Financial Results

  • Net income of $263.4M, contrast with $265.8M for the same period in 2017. Diluted earnings per share of $1.79, contrast with $1.62 for the same period in 2017.
  • Diluted earnings per share increased 10%, mainly driven by the repurchase of 20.0M shares from July 2017 through September 2018.

Basic lease rents were $1,038.5M for the third quarter of 2018, contrast with $1,038.4M for the same period in 2017.

Maintenance rents and other receipts were $93.9M for the third quarter of 2018, contrast with $163.0M for the same period in 2017. The decrease was mainly as a result of lower end of lease compensation during the third quarter of 2018.

Net gain on sale of assets for the third quarter of 2018 was $20.0M, regarding13 aircraft sold, contrast with $63.7M for the same period in 2017, regarding27 aircraft sold. The decrease was mainly because of the volume and composition of asset sales.

Interest expense excluding mark-to-market of interest rate caps of $4.9M was $297.0M for the third quarter of 2018, contrast with $278.2M for the same period in 2017. Average cost of debt was 4.1% for the third quarter of 2018, contrast with 4.0% for the same period in 2017.

Annualized net spread was 8.4% for the third quarter of 2018, contrast with 8.9% for the same period in 2017. The decrease was mainly because of the lower age of our owned fleet, which increased our average remaining lease term to 7.1 years. Younger aircraft tend to have lower yields than older aircraft.

Selling, general and administrative expenses were $63.4M for the third quarter of 2018, contrast with $83.9M for the same period in 2017. The decrease was mainly because of a decrease in share-based compensation and other compensation-related expenses.

Other Expenses

Leasing expenses were $84.8M for the third quarter of 2018, contrast with $137.8M for the same period in 2017. The decrease was mainly because of a decrease in maintenance rights expense as a result of the lower maintenance rights intangible asset balance, partially offset by a boost in other leasing expenses as a result of lease terminations. Asset impairment charges were $12.8M for the third quarter of 2018, contrast to $45.6M recorded for the same period in 2017. Asset impairment recorded in the third quarter of 2018 related to sales transactions and lease terminations and was more than offset by maintenance revenue.

Effective Tax Rate

Our effective tax rate for the third quarter of 2018 was 13.0%, contrast to 11.5% for the same period in 2017. The effective tax rate for the full year 2017 was 13.3%. The effective tax rate is influenced by the source and amount of earnings among our different tax jurisdictions.

As of September 30, 2018, AerCap’s portfolio consisted of 1,457 aircraft that were owned, on order or managed. The average age of our owned fleet as of September 30, 2018 was 6.6 years and the average remaining contracted lease term was 7.1 years.

Share Repurchase Program

On October 29, 2018, our Board of Directors approved a new share repurchase program authorizing total repurchases of up to $200M of AerCap ordinary shares through March 31, 2019. Repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable U.S. federal securities laws. The timing of repurchases and the exact number of common shares to be purchased will be determined by the Company’s management, in its discretion, and will depend upon market conditions and other factors. The program will be funded using the Company’s cash on hand and cash generated from operations. The program may be suspended or suspended at any time.

 

On the Other hand, Shares of Intrepid Potash, Inc. (NYSE:IPI) remained 0.00% to $3.31. The last session saw more than 0 shares changing hands, while its earnings per share (EPS) stand at $-0.02.

One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Relative strength index (RSI-14) for Intrepid Potash, Inc. (IPI) is at 41.05. Investigating the productivity proportions of business stock, speculator will discover its ROE, ROA, ROI remaining at -0.60%, -0.50% and -2.50%, individually.

ATR remains at 0.15 while Beta component of the stock stands at 1.02. Beta element is utilized to gauge the volatility of the stock. The stock remained 5.33% volatile for the week and 4.50% for the month. Analysts’ mean recommendation on this stock is 3.00 and has been given an average price target of $3.88.

Intrepid Potash, Inc. (Intrepid) (IPI) recently stated its results for the third quarter of 2018.

Key Q3 Takeaways

Net income of $3.4M, or $0.03 per share, a $5.3M increase contrast to prior year third quarter net loss of $1.9M, or $0.02 per share.
Cash flow from operations of $14.8M, a $12.2M increase contrast to the prior year third quarter.
Total sales of $36.5M, a $2.5M increase contrast to the prior year third quarter.
Higher average net realized sales prices per ton and increased by-product sales drove improvements in potash and Trio segment gross margins of $2.1M and $1.0M, respectively, contrast to the prior year third quarter.
Water business delivers record quarter with $9.7M in cash received.

Consolidated Results

Intrepid generated third quarter net income of $3.4M, or $0.03 per share, resulting in year-to-date net income of $4.1M, or $0.03 per share. Consolidated gross margin increased to $9.0M and $23.4M in the third quarter and first nine months of 2018, respectively, contrast to the prior year. Increased net income and gross margin were the result of increased water and by-product sales, improvement in the average net realized sales price per ton of potash, and reduced lower-of-cost-or-market adjustments in the Trio® segment.

Cash offered by operating activities increased year over year to $14.8M and $52.9M for the third quarter and first nine months of 2018, respectively. Increases were driven by increased water sales, payments received under a prearranged water commitment, and reduced interest expense.

Average net realized sales price per ton increased 11% and 6% for the third quarter and first nine months of 2018, respectively, which combined with increases in by-product sales, drove year-over-year improvements in gross margin. Sales reduced slightly contrast to the prior year because of normal variations in the timing of sales to agricultural customers.

Production volumes increased 18% contrast to the third quarter of the prior year as improvements to the langbeinite plant increased overall recovery rates. Year to date production volumes remained lower than the previous year because of the reduced operating plan.

Sales volume reduced slightly during the third quarter of 2018 as inclement weather delayed some shipments into the fourth quarter of 2018 and Intrepid continued its price-over-volume strategy in the international market.

Gross deficit improved to $0.2M in the third quarter of 2018 as previous price increases and a focus on more profitable markets drove a boost in average net realized sales price per ton contrast to the prior year.

Liquidity

Cash offered by operations was $14.8M during the third quarter of 2018 and cash spent on capital investments was $3.8M. As of September 30, 2018, Intrepid had $37.2M in cash and cash equivalents and $25.7M available to borrow under its credit facility.

Shares outstanding refers to all shares presently owned by stockholders, company officials, and investors in the public domain, but does not comprise shares repurchased by a company.

Shares that are outstanding comprise stock owned by the firm’s shareholders and owners. Shares outstanding does not comprise treasury stock, which are stock shares that are repurchased by the company. It also does not comprise unissued shares.

The number of shares outstanding is listed on a company’s balance sheet as “Capital Stock” and is stated on the company’s quarterly filings with the US Securities and Exchange Commission. The number of shares outstanding can also be found in the capital section of a company’s annual report.

WHY IT IS Important:

Outstanding shares are used in the calculation of market capitalization (outstanding shares multiplied by current share price) and earnings per share (EPS calculated as outstanding shares divided by earnings), two major measures of a company’s value and performance used by investors.

Now we will find outstanding shares of these two stocks

Firstly, AerCap Holdings N.V. (NYSE:AER)’s outstanding shares are $147.93M.  Secondly, Intrepid Potash, Inc. (NYSE:IPI)’s outstanding shares are $131.51M.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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