AerCap Holdings - Q3 results: demonstrating positive operating leverage

Davy Research
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AerCap (AER) has issued a strong set of Q3 results with diluted EPS of $2.01, 5% ahead of consensus ($1.91) and 6% above our estimates (Davy: $1.90). The beat was driven by another strong cost performance where depreciation continues to inch down in-line with the younger fleet and SG&A demonstrates positive operating leverage. A new $200m share buyback programme will be supportive to the share and is supported by firming revenue quality and visibility via 97% of lease rentals through 2022 already being contracted.