Atlas Air reported a better-than-expected quarterly profit Monday, but its shares fell more than 15 percent after it said it planned a stock offering.
The provider of air cargo services cited improvement in supply and demand for global airfreight from earlier this year and said it expected better trends throughout the current fourth quarter.
Sidoti analyst Stephen O'Hara said dilution or concerns about it from the equity offering could account for the share weakness.
"The commercial charter business appeared to be much stronger," O'Hara said of the quarterly results. "It seems as if the market is turning around a little bit more than people have expected."
Third-quarter net income rose to USD$14.1 million, from USD$5.2 million a year earlier.
Operating revenue fell about 45 percent to USD$255.5 million. Expenses fell about 49 percent.
Atlas Air also said on Monday that it planned a public offering of 5.25 million common shares and would use the proceeds for general corporate purposes, including capital spending or funding of potential acquisitions.
