Why Air Lease Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of commercial aircraft leasing company Air Lease (NYS: AL) fell as much as 13.5% in early trading this morning before recovering some of the loss and trading down 4% as this was written.

So what: First-quarter revenue rose 140% from a year ago to $132.6 million and was in line with analyst estimates. But the bottom line wasn't as impressive, reaching $0.26, or $0.03 short of estimates.

Now what: Higher costs drove the disappointing earnings results, but the big sell-off this morning appears to be well overdone. The company's big jump in revenue and earnings is impressive, but I would like to see more value in shares before jumping in. A trailing P/E ratio of 38 just isn't good enough for me.

Interested in more info on Air Lease? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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