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AAR Corp (AIR) Q4 Earnings Top Estimates, Revenues Up Y/Y


AAR Corp. AIR reported fourth-quarter fiscal 2017 earnings of 44 cents per share, which surpassed the Zacks Consensus Estimate of 43 cents. Earnings were up 29.4% from the year-ago figure of 34 cents.

Full-year earnings from continuing operations came in at $1.45, up 31.8% from $1.10 in the year ago.

Total Revenue

Net sales came in at $492.3 million in the fiscal fourth quarter, beating the Zacks Consensus Estimate of $422 million by 5.8%. Also, revenues increased 5.1% from $468.6 million in the year-ago quarter.

Full-year revenues were $1,767.6 million, up 4% from $1,698.9 million a year ago.

Segment Details

In the reported quarter, Aviation Services reported revenues of $421.3 million, up 5.2% year over year. The upside was driven by continued strong performance by the company's industry leading supply chain management solutions.

Expeditionary Services garnered revenues of $71 million, up 4.1% from $68.2 million in the year-ago quarter.

Highlights of the Release

In the fiscal fourth quarter, AAR Corp.’s cost of sales increased 2.4% year over year to $412.5 million.

Selling, general and administrative expenses increased 23.8% to $58.2 million.

The company incurred interest expenses of $1.5 million, higher than $1.2 million in the year-ago quarter.

AAR Corp. Price, Consensus and EPS Surprise

AAR Corp. Price, Consensus and EPS Surprise | AAR Corp. Quote

Financial Condition

AAR Corp.’s cash and cash equivalents as of May 31, 2017 were $10.3 million down from $31.2 million as of May 31, 2016.

Net property, plant and equipment were $201.9 million as of May 31, 2017 compared with $238.1 million as of May 31, 2016.

As of May 31, 2017, total debt increased to $159.3 million from $150.1 million as of May 31, 2016.

Dividend History

During the fiscal third quarter, the company has paid dividends of $2.5 million or 7.5 cents per share.

Share Repurchase Authorization

AAR Corp.'s board of directors recently approved a share buyback program to return more value to investors. The latest authorization will allow the company to spend up to $250 million to repurchase its common stock.

Zacks Rank

AAR Corp. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Peer Releases

Rockwell Collins, Inc. COL is scheduled to report third-quarter fiscal 2017 results on Jul 28.

Raytheon Company RTN is expected to report second-quarter 2017 results on Jul 27.

Spirit AeroSystems Holdings, Inc. SPR is anticipated to report second-quarter 2017 results on Aug 2.

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