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AAR Corp (AIR) Q4 Earnings Miss Estimates, Revenues Lag
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Aerospace and defense products and services supplier AAR Corporation (AIR - Free Report) reported fourth-quarter fiscal 2016 earnings of 32 cents per share, missing the Zacks Consensus Estimate of 45 cents by 28.9%.
The company had reported a loss of 97 cents per share in the year-ago quarter.
The company’s fiscal 2016 earnings per share came in at $1.16, missing the Zacks Consensus Estimate of $1.30 by 10.8%. The figure, however, fared better than the year-ago loss of $1.40.
In the quarter under review, consolidated sales were $458.2 million, missing the Zacks Consensus Estimate of $459 million marginally. On a year-over-year basis, however, revenues improved 10.2% primarily due to higher contribution from the Aviation Services segment.
For fiscal 2016 the company reported consolidated sales of $1,662.6 million, reflecting a 4.3% year-over-year increase.
Sales to commercial customers in fiscal 2016 represented 61% of total consolidated sales, compared to 63% in fiscal 2015.
Segment Details
In the reported quarter, Aviation Services reported revenues of $400.4 million, comprising approximately 87.4% of the total revenue. Segmental revenues were up 11.2% year over year on the back of an industry-leading supply chain.
The Expeditionary Services segment contributed the remaining 12.6% to quarterly revenues, corresponding to $57.8 million, which were up 4%.
In the fiscal fourth quarter, AAR Corp.’s cost of sales decreased 9.7% year over year to $394 million.
Selling, general and administrative expenses declined 9.4% to $46.3 million.
The company incurred interest expense of $1.2 million, lower than $7.1 million in the year-ago quarter.
Financial Update
AAR Corp.’s cash and cash equivalents, as of May 31, 2016, were $31.2 million, down from $54.7 million as of May 31, 2015.
Net property, plant and equipment were $232.8 million as of May 31, 2016, compared with $214.8 million as of May 31, 2015.
As of May 31, 2016, total debt decreased to $150.1 million from $154 million as of May 31, 2015.
Dividend and Repurchase
During the fourth quarter, the company paid dividends of $2.6 million, or 7.5 cents per share, and repurchased approximately 61,000 shares for $1.4 million, or $23.11 per share.
Guidance
For fiscal 2017, the company expects consolidated sales in the range of $1.7–$1.8 billion.
Diluted earnings per share from continuing operations are expected to be $1.30–$1.40.
Upcoming Peer Releases
Curtiss-Wright Corporation (CW - Free Report) is scheduled to report quarterly results on Jul 27, after the market closes. The Zacks Consensus Estimates is 83 cents.
Raytheon Company is scheduled to report earnings on Jul 28, before the market opens. The Zacks Consensus Estimates is $1.56.
Orbital ATK, Inc. is scheduled to release earnings on Aug 4. The Zacks Consensus Estimates is $1.30.
Zacks Rank
AAR Corporation currently carries a Zacks Rank #3 (Hold).
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AAR Corp (AIR) Q4 Earnings Miss Estimates, Revenues Lag
Aerospace and defense products and services supplier AAR Corporation (AIR - Free Report) reported fourth-quarter fiscal 2016 earnings of 32 cents per share, missing the Zacks Consensus Estimate of 45 cents by 28.9%.
The company had reported a loss of 97 cents per share in the year-ago quarter.
The company’s fiscal 2016 earnings per share came in at $1.16, missing the Zacks Consensus Estimate of $1.30 by 10.8%. The figure, however, fared better than the year-ago loss of $1.40.
Revenues
In the quarter under review, consolidated sales were $458.2 million, missing the Zacks Consensus Estimate of $459 million marginally. On a year-over-year basis, however, revenues improved 10.2% primarily due to higher contribution from the Aviation Services segment.
For fiscal 2016 the company reported consolidated sales of $1,662.6 million, reflecting a 4.3% year-over-year increase.
Sales to commercial customers in fiscal 2016 represented 61% of total consolidated sales, compared to 63% in fiscal 2015.
Segment Details
In the reported quarter, Aviation Services reported revenues of $400.4 million, comprising approximately 87.4% of the total revenue. Segmental revenues were up 11.2% year over year on the back of an industry-leading supply chain.
The Expeditionary Services segment contributed the remaining 12.6% to quarterly revenues, corresponding to $57.8 million, which were up 4%.
AAR CORP Price and Consensus
AAR CORP Price and Consensus | AAR CORP Quote
Operational Highlights
In the fiscal fourth quarter, AAR Corp.’s cost of sales decreased 9.7% year over year to $394 million.
Selling, general and administrative expenses declined 9.4% to $46.3 million.
The company incurred interest expense of $1.2 million, lower than $7.1 million in the year-ago quarter.
Financial Update
AAR Corp.’s cash and cash equivalents, as of May 31, 2016, were $31.2 million, down from $54.7 million as of May 31, 2015.
Net property, plant and equipment were $232.8 million as of May 31, 2016, compared with $214.8 million as of May 31, 2015.
As of May 31, 2016, total debt decreased to $150.1 million from $154 million as of May 31, 2015.
Dividend and Repurchase
During the fourth quarter, the company paid dividends of $2.6 million, or 7.5 cents per share, and repurchased approximately 61,000 shares for $1.4 million, or $23.11 per share.
Guidance
For fiscal 2017, the company expects consolidated sales in the range of $1.7–$1.8 billion.
Diluted earnings per share from continuing operations are expected to be $1.30–$1.40.
Upcoming Peer Releases
Curtiss-Wright Corporation (CW - Free Report) is scheduled to report quarterly results on Jul 27, after the market closes. The Zacks Consensus Estimates is 83 cents.
Raytheon Company is scheduled to report earnings on Jul 28, before the market opens. The Zacks Consensus Estimates is $1.56.
Orbital ATK, Inc. is scheduled to release earnings on Aug 4. The Zacks Consensus Estimates is $1.30.
Zacks Rank
AAR Corporation currently carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>