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AAR Corp (AIR) Misses Earnings and Revenue Estimates in Q2

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AAR Corp. (AIR - Free Report) reported second-quarter fiscal 2018 earnings of 35 cents per share, which missed the Zacks Consensus Estimate of 37 cents by 5.4. The bottom line remained in line with the year-ago figure.

Excluding one-time items, the company reported a loss of 66 cents in the reported quarter, as against earnings of 35 cents it generated in the prior-year quarter.

Total Revenues

Net sales came in at $449.7 million in the fiscal second quarter, which also missed the Zacks Consensus Estimate of $454 million by 1%. However, revenues increased 6.1% from $423.8 million in the year-ago quarter.

Segment Details

In the reported quarter, Aviation Services reported revenues of $391.6 million, up 13% year over year.

Expeditionary Services garnered revenues of $58.1 million, down 24.6% from $77.1 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 second quarter, AAR Corp’s cost of sales increased 5.5% year over year to $377.2 million.

Selling, general and administrative expenses increased 12.7% to $52.2 million.

The company incurred interest expenses of $1.9 million, higher than $1.1 million in the year-ago quarter.

Financial Condition

As of Nov 30, 2017 AAR Corp’s cash and cash equivalents were $27.1 million, up from $10.3 million as of May 31, 2017.

As of Nov 30, 2017 net property, plant and equipment were $195.3 million compared with $201.9 million as of May 31, 2017.

As of Nov 30, 2017 total debt increased to $219.4 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 has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Upcoming Peer Releases

Lockheed Martin Corp. (LMT - Free Report) is expected to report fourth-quarter 2017 results on Jan 23.

Raytheon Company is anticipated to report fourth-quarter 2017 results on Jan 25.

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

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