We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AAR Corp. (AIR - Free Report) reported second-quarter fiscal 2017 earnings of 35 cents per share, up 34.6% from the year-ago figure of 26 cents.
Total Revenue
Net sales came in at $423.8 million in the second quarter of fiscal 2017, down 1.8% from $431.5 million in the year-ago quarter.
Segment Details
In the reported quarter, Aviation Services reported revenues of $346.7 million, down 3.6% year over year due to the impact of the Lake Charles transition and the wind-down of the KC10 Program.
Expeditionary Services garnered revenues of $77.1 million, up 7.2% from $71.9 million in the year-ago quarter.
Highlights of the Release
In the fiscal second quarter, AAR Corp.’s cost of sales declined 4% year over year to $357.6 million.
Selling, general and administrative expenses increased 7.4% to $46.3 million due to investments in new business development.
The company incurred interest expenses of $1.2 million, lower than $1.5 million in the year-ago quarter.
Financial Condition
AAR Corp.’s cash and cash equivalents as of Nov 30, 2016 were $23.0 million, down from $31.2 million as of May 31, 2016.
Net property, plant and equipment were $213.9 million as of Nov 30, 2016, compared with $238.1 million as of May 31, 2016.
As of Nov 30, 2016, total debt increased to $163.3 million from $150.1 million as of May 31, 2016.
Dividend History
During the fiscal second quarter, the company has paid dividends of $2.6 million, or 7.5 cents per share.
Price Movement
During the quarter under review, AAR Corp.’s rate of return was 40.8%, outperforming the Zacks categorized Aerospace/Defense Equipment industry’s gain of 7.6%. This could have been because of the company’s persistent focus on gradually lowering its debts as well as its expectations of an increase in cash flow driven by strong fundamentals. Being the largest independent MRO provider in North America, the company enjoys a competitive edge over others operating in this space such as Ducommun Inc. (DCO - Free Report) , CAE Inc. (CAE - Free Report) and Spirit AeroSystems Holdings, Inc. (SPR - Free Report) .
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
AAR Corp (AIR) Q2 Earnings Increase Y/Y, Revenues Decline
AAR Corp. (AIR - Free Report) reported second-quarter fiscal 2017 earnings of 35 cents per share, up 34.6% from the year-ago figure of 26 cents.
Total Revenue
Net sales came in at $423.8 million in the second quarter of fiscal 2017, down 1.8% from $431.5 million in the year-ago quarter.
Segment Details
In the reported quarter, Aviation Services reported revenues of $346.7 million, down 3.6% year over year due to the impact of the Lake Charles transition and the wind-down of the KC10 Program.
Expeditionary Services garnered revenues of $77.1 million, up 7.2% from $71.9 million in the year-ago quarter.
Highlights of the Release
In the fiscal second quarter, AAR Corp.’s cost of sales declined 4% year over year to $357.6 million.
Selling, general and administrative expenses increased 7.4% to $46.3 million due to investments in new business development.
The company incurred interest expenses of $1.2 million, lower than $1.5 million in the year-ago quarter.
Financial Condition
AAR Corp.’s cash and cash equivalents as of Nov 30, 2016 were $23.0 million, down from $31.2 million as of May 31, 2016.
Net property, plant and equipment were $213.9 million as of Nov 30, 2016, compared with $238.1 million as of May 31, 2016.
As of Nov 30, 2016, total debt increased to $163.3 million from $150.1 million as of May 31, 2016.
Dividend History
During the fiscal second quarter, the company has paid dividends of $2.6 million, or 7.5 cents per share.
Price Movement
During the quarter under review, AAR Corp.’s rate of return was 40.8%, outperforming the Zacks categorized Aerospace/Defense Equipment industry’s gain of 7.6%. This could have been because of the company’s persistent focus on gradually lowering its debts as well as its expectations of an increase in cash flow driven by strong fundamentals. Being the largest independent MRO provider in North America, the company enjoys a competitive edge over others operating in this space such as Ducommun Inc. (DCO - Free Report) , CAE Inc. (CAE - Free Report) and Spirit AeroSystems Holdings, Inc. (SPR - Free Report) .
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.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>