Air Transport Services Group (NASDAQ:ATSG) stock has reached a new 52-week high, touching $22.46 amid a robust year for the cargo airline company. With a market capitalization of $1.47 billion and trailing twelve-month EBITDA of $518.7 million, ATSG has demonstrated strong operational performance. According to InvestingPro data, the company maintains a relatively stable trading pattern with low price volatility. This milestone reflects a significant uptrend in the company’s stock value, which has seen an impressive 75.88% increase over the past year. Investors have shown increased confidence in ATSG’s business model, which has benefited from the growing demand for air cargo services. The company’s strategic initiatives and operational efficiency have played a key role in driving the stock to these new heights, with annual revenues of $1.96 billion and a P/E ratio of 53.33. InvestingPro analysis reveals 8 additional key insights about ATSG’s financial health and growth prospects, available exclusively to subscribers.
In other recent news, Air Transport Services Group reported mixed fourth-quarter results, with earnings surpassing analyst expectations, while revenue fell slightly short. The company posted adjusted earnings per share of $0.40, exceeding the consensus estimate of $0.29. Revenue for the quarter was $517 million, compared to the expected $524.6 million. Adjusted EBITDA rose to $162.2 million from $129.9 million in the previous year, and free cash flow improved significantly to $34.7 million from a negative $65.5 million a year ago. Additionally, Air Transport Services Group announced plans to redeem $700 million in outstanding 4.750% Senior Notes due in 2028, contingent upon a merger with Stonepeak Nile MergerCo Inc. The merger is expected to close in the first half of 2025, and the redemption is set for April 11, 2025, if the merger is completed. The company also noted continued momentum in its aircraft leasing business and improved profitability in its ACMI Services. The redemption announcement follows an indenture agreement and does not constitute an offer to purchase the notes.
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