Willis Lease Finance Corporation (WLFC) saw its stock price plummet 8.66% in Tuesday's trading session, despite reporting increased revenue and a higher dividend for the third quarter of 2025. The sharp decline comes as investors appear to be focusing on the year-over-year decrease in earnings per share, raising concerns about the company's profitability.
The aircraft leasing company reported Q3 earnings of $3.25 per diluted share, down from $3.37 in the same period last year. This decline occurred even as revenue surged to $183.4 million, a significant increase from $146.2 million in the previous year. Willis Lease Finance also announced an increase in its quarterly dividend from $0.25 to $0.40 per share, payable on November 26 to shareholders of record on November 17.
Despite beating analyst expectations - with adjusted earnings of $3.68 per share surpassing the forecast of $3.34 - the market's negative reaction suggests investors may be concerned about the company's ability to translate revenue growth into improved bottom-line results. The contrasting movements of rising revenue and falling earnings per share could indicate increasing costs or operational inefficiencies, prompting a reassessment of the company's near-term prospects by market participants.
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