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AAR Corp (AIR) Beats Q1 Earnings and Revenue Estimates

Zacks

AAR Corp. AIR reported first-quarter fiscal 2017 earnings of 29 cents per share, surpassing the Zacks Consensus Estimate of 28 cents by 3.6%. The reported figure was also up from the year-ago figure of 23 cents.

Total Revenue

AAR Corp. reported net sales of $404.8 million in the first quarter of fiscal 2017, up 4.7% from $386.7 million in the year-ago quarter.

Fiscal first-quarter revenues also beat the Zacks Consensus Estimate of $400 million by 1.2%.

AAR CORP Price, Consensus and EPS Surprise


Segment Details

In the reported quarter, Aviation Services reported revenues of $334.6 million, up 6% year over year. Revenues were driven by the segment’s industry-leading supply chain.

Expeditionary Services garnered revenues of $70.2 million, down a marginal 1% from $70.9 million in the year-ago quarter.

Highlights of the Release

In the fiscal first quarter, AAR Corp.’s cost of sales increased 3.2% year over year to $343.3 million.

Selling, general and administrative expenses increased 12% to $44.8 million, driven by investments in new business development.

The company incurred interest expense of $1.3 million, lower than $1.9 million in the year-ago quarter.

Financial Condition

AAR Corp.’s cash and cash equivalents as of Aug 31, 2016 were $7.9 million, down from $31.2 million as of May 31, 2016.

Net property, plant and equipment were $231.4 million as of Aug 31, 2016, compared with $238.1 million as of May 31, 2016.

As of Aug 31, 2016, total debt increased to $151.6 million from $150.1 million as of May 31, 2016.

Dividend & Share Repurchase History

During the fiscal first quarter, the company paid dividends of $2.6 million, or 7.5 cents per share, and repurchased approximately 619,000 shares for $14.8 million, or $23.94 per share.

Guidance

For fiscal 2017, Diluted earnings per share from continuing operations are still expected in the range of $1.30–$1.40.

Peer Releases

Ducommun Inc. DCO posted earnings of 34 cents per share in the second quarter of 2016, surpassing the Zacks Consensus Estimate of 28 cents by 21.4%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CAE Inc. CAE posted earnings of 20 cents per share in the second quarter of 2016, surpassing the Zacks Consensus Estimate of 16 cents by 25%. The stock carries a Zacks Rank #2 (Buy).

CPI Aerostructures Inc. CVU posted earnings of 21 cents per share in the second quarter of 2016, surpassing the Zacks Consensus Estimate of 15 cents by 40%. The stock holds a Zacks Rank #2.

Zacks Rank

AAR Corporation currently carries a Zacks Rank #3 (Hold).

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