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AAR Corp (AIR) Q1 Earnings Meet Estimates, Revenues Up Y/Y

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AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2018 earnings of 31 cents per share, in line with the Zacks Consensus Estimate. The bottom line also inched up 0.2% from the year-ago figure of 29 cents.

Total Revenue

Net sales came in at $439.2 million in the fiscal first quarter, beating the Zacks Consensus Estimate of $412 million by 6.6%. Also, revenues increased 8.5% from $404.8 million in the year-ago quarter.

Segment Details

In the reported quarter, Aviation Services reported revenues of $371.3 million, up 11% year over year.

Expeditionary Services garnered revenues of $67.9 million, down 3.3% from $70.2 million in the year-ago quarter.

AAR Corp. Price, Consensus and EPS Surprise

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

Highlights of the Release

In the fiscal first quarter, AAR Corp.’s cost of sales increased 9.1% year over year to $374.7 million.

Selling, general and administrative expenses increased 7.1% to $48 million.

The company incurred interest expenses of $1.7 million, higher than $1.3 million in the year-ago quarter.

Financial Condition

As of Aug 31, AAR Corp.’s cash and cash equivalents were $15.1 million, up from $10.3 million as of May 31, 2017.

As of May 31, net property, plant and equipment were $198.1 million compared with $201.9 million as of May 31, 2017.

As of Aug 31, total debt increased to $192.9 million from $159.3 million as of May 31, 2017.

Dividend History

During the reported quarter, the company paid dividends of $2.6 million or 7.5 cents per share.

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. is expected to report fourth-quarter fiscal 2017 results on Oct 23.

Raytheon Company is anticipated to report third-quarter 2017 results on Oct 26.

Spirit AeroSystems Holdings, Inc. (SPR - Free Report) is expected to report third-quarter 2017 results on Nov 7.

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