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Why Is AAR (AIR) Up 2.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for AAR (AIR - Free Report) . Shares have added about 2.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AAR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
AAR Corp Q4 Earnings Beat Estimates, Sales Fall Y/Y
AAR Corp. reported fourth-quarter fiscal 2020 adjusted earnings of 26 cents per share, while the Zacks Consensus Estimate was pegged at a loss of 24 cents.
The figure reflected a year-over-year decline of 59.4% from earnings of 64 cents registered in the year-ago quarter. Excluding one-time items, the company reported a loss of 43 cents per share from continuing operations compared with 76 cents in fourth-quarter fiscal 2019.
AAR Corp’s adjusted earnings for fiscal 2020 came in at 71 cents per share, which lagged the Zacks Consensus Estimate of $1.65 by 57% and the year-ago earnings of $2.40.
Total Sales
In the quarter under review, net sales totaled $416.5 million. The reported figure outpaced the Zacks Consensus Estimate of $326 million by 27.8% but plunged26% from $562.7 million recorded in the year-ago quarter.
The year-over-year decline in sales was due to the impact of COVID-19 and the unprecedented grounding of all commercial fleet.
AAR Corp’s full-year sales came to $2.07 billion, up 1% from $2.05 billion reported in the year-ago quarter.
Segment Details
In the fiscal fourth quarter, sales at the Aviation Services segment summed $390.1 million, down25.3% year over year.
Expeditionary Services garnered sales of $26.4 million, down 35.1% from $40.7 million in the year-ago quarter.
Highlights of the Release
AAR Corp’s cost of sales in the reported quarter fell18.8% year over year to $380.1 million.
Selling, general and administrative expenses declined 25.3% to $47.3 million.
The company incurred interest expenses of $2.6 million compared with $2.1 million in fourth-quarter fiscal 2019.
During the quarter under review, the company paid out cash dividends of $2.6 million.
Financial Condition
As of May 31, 2020, AAR Corp’s cash and cash equivalents amounted to $404.7 million compared with $21.3 million as of May 31, 2019.
As of May 31, 2020, net property, plant and equipment expenses totaled$135.7 million compared with $132.8 million as of May 31, 2019.
As of May 31, 2020, total debt decreased to $602 million from $142.9 million as of May 31, 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 8.33% due to these changes.
VGM Scores
Currently, AAR has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, AAR has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is AAR (AIR) Up 2.6% Since Last Earnings Report?
It has been about a month since the last earnings report for AAR (AIR - Free Report) . Shares have added about 2.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AAR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
AAR Corp Q4 Earnings Beat Estimates, Sales Fall Y/Y
AAR Corp. reported fourth-quarter fiscal 2020 adjusted earnings of 26 cents per share, while the Zacks Consensus Estimate was pegged at a loss of 24 cents.
The figure reflected a year-over-year decline of 59.4% from earnings of 64 cents registered in the year-ago quarter.
Excluding one-time items, the company reported a loss of 43 cents per share from continuing operations compared with 76 cents in fourth-quarter fiscal 2019.
AAR Corp’s adjusted earnings for fiscal 2020 came in at 71 cents per share, which lagged the Zacks Consensus Estimate of $1.65 by 57% and the year-ago earnings of $2.40.
Total Sales
In the quarter under review, net sales totaled $416.5 million. The reported figure outpaced the Zacks Consensus Estimate of $326 million by 27.8% but plunged26% from $562.7 million recorded in the year-ago quarter.
The year-over-year decline in sales was due to the impact of COVID-19 and the unprecedented grounding of all commercial fleet.
AAR Corp’s full-year sales came to $2.07 billion, up 1% from $2.05 billion reported in the year-ago quarter.
Segment Details
In the fiscal fourth quarter, sales at the Aviation Services segment summed $390.1 million, down25.3% year over year.
Expeditionary Services garnered sales of $26.4 million, down 35.1% from $40.7 million in the year-ago quarter.
Highlights of the Release
AAR Corp’s cost of sales in the reported quarter fell18.8% year over year to $380.1 million.
Selling, general and administrative expenses declined 25.3% to $47.3 million.
The company incurred interest expenses of $2.6 million compared with $2.1 million in fourth-quarter fiscal 2019.
During the quarter under review, the company paid out cash dividends of $2.6 million.
Financial Condition
As of May 31, 2020, AAR Corp’s cash and cash equivalents amounted to $404.7 million compared with $21.3 million as of May 31, 2019.
As of May 31, 2020, net property, plant and equipment expenses totaled$135.7 million compared with $132.8 million as of May 31, 2019.
As of May 31, 2020, total debt decreased to $602 million from $142.9 million as of May 31, 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 8.33% due to these changes.
VGM Scores
Currently, AAR has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, AAR has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.