AerSale Corp (NASDAQ:ASLE) stock plunges 16.26% (As on March 7, 11:34:14 AM UTC-4, Source: Google Finance) after the company misses the sales estimates for the fourth quarter of FY 22. Revenue for the fourth quarter of 2022 included $51.4 million of flight equipment sales compared to $73.1 million of flight equipment sales in the prior year period. Flight equipment sales in the fourth quarter of 2022 consisted of six engines and three aircraft, which included one AerSale converted passenger to freighter (P2F) aircraft versus three aircraft and four engines in the fourth quarter of 2021. The decline in sales was largely a result of the pacing of flight equipment sales, which tend to occur at irregular intervals throughout the year. Asset Management Solutions revenue decreased to $67.9 million during the fourth quarter of 2022 compared to $93.6 million in the fourth quarter of 2021, primarily due to the pacing of flight equipment sales.  Lower Asset Management revenue was partially offset by improved results from TechOps, fueled by better performance from landing gear and aerostructure maintenance, repair and overhaul (MRO), as well as increased revenue from AerSale’s Goodyear on-airport MRO facility due to additional capacity dedicated to customer aircraft. Fourth quarter 2022 GAAP net income was $9.2 million versus $11.2 million in the prior year period, mainly due to lower flight equipment sales, which tend to have better margins.

ASLE in the fourth quarter of FY 22 has reported the adjusted earnings per share of 23 cents, beating the analysts’ estimates for the adjusted earnings per share of 18 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $95.1 million in the fourth quarter of FY 22, missing the analysts’ estimates for revenue by 23.32%. Fourth quarter 2022 adjusted EBITDA was $17.7 million, compared to $28.6 million in the prior-year period. Cash used in operating activities was $0.1 million, primarily due to the application of $18.0 million in customer deposits associated with the sale of a 747 freighter aircraft that closed during 2022, for which the sale proceeds are reflected under investment activities. AerSale continued its investment in the 757 P2F conversion program, which is largely the driver of the $13.3 million increase in advance vendor payments, as well as investing an additional $37.6 million to increase inventory available for sale. AerSale ended the year with $147.2 million of cash and has an undrawn $150 million credit facility.