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AAR Corp (AIR) Q1 Earnings Top Estimates on Higher Y/Y Sales
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AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2019 adjusted earnings of 54 cents per share, which surpassed the Zacks Consensus Estimate of 52 cents by 3.9%. The adjusted figure reflected a year-over-year improvement of 63.6% from 33 cents registered in the year-ago quarter.
The year-over-year bottom-line growth can be primarily attributed to solid improvement in sales.
Excluding one-time items, the company reported earnings of 54 cents from continuing operations compared with 32 cents in first-quarter fiscal 2018.
In the reported quarter, net sales of $466.3 million exceeded the Zacks Consensus Estimate of $455 million by 2.5%. The top line also increased 17.2% from $397.9 million in the year-ago quarter.
The year-over-year improvement in sales was driven by solid results from AAR Corp’s trading, distribution and programs activities. Also, the successful launch of the INL/A Worldwide Aviation Support Services (WASS) program, which achieved full run-rate in July, contributed to the top line.
Segment Details
In the fiscal first quarter, revenues from the Aviation Services segment summed $438.4 million, up 18.1% year over year.
Expeditionary Services garnered revenues of $27.9 million, up 4.9% from $29.2 million in the year-ago quarter.
Highlights of the Release
AAR Corp’s cost of sales in the reported quarter increased 17.5% year over year to $395.1 million.
Selling, general and administrative expenses rose 10% to $48.8 million.
The company incurred interest expenses of $1.6 million compared with $1.7 million in first-quarter fiscal 2018.
Financial Condition
As of Aug 31, 2018, AAR Corp’s cash and cash equivalents amounted to $22.7 million compared with $31.1 million as of May 31, 2018.
As of Aug 31, 2018, net property, plant and equipment were $132.5 million compared with $133.2 million as of May 31, 2018.
As of Aug 31, 2018, total debt increased to $210.7 million from $178.9 million as of May 31, 2018.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2018 adjusted earnings of 75 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 1.3%.
Textron Inc.’s (TXT - Free Report) second-quarter 2018 earnings from continuing operations came in at 87 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 24.3%.
Raytheon Company reported second-quarter 2018 adjusted earnings per share from continuing operations of $2.45, outpacing the Zacks Consensus Estimate of $2.32 by 5.6%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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AAR Corp (AIR) Q1 Earnings Top Estimates on Higher Y/Y Sales
AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2019 adjusted earnings of 54 cents per share, which surpassed the Zacks Consensus Estimate of 52 cents by 3.9%. The adjusted figure reflected a year-over-year improvement of 63.6% from 33 cents registered in the year-ago quarter.
The year-over-year bottom-line growth can be primarily attributed to solid improvement in sales.
Excluding one-time items, the company reported earnings of 54 cents from continuing operations compared with 32 cents in first-quarter fiscal 2018.
AAR Corp. Price, Consensus and EPS Surprise
AAR Corp. Price, Consensus and EPS Surprise | AAR Corp. Quote
Total Sales
In the reported quarter, net sales of $466.3 million exceeded the Zacks Consensus Estimate of $455 million by 2.5%. The top line also increased 17.2% from $397.9 million in the year-ago quarter.
The year-over-year improvement in sales was driven by solid results from AAR Corp’s trading, distribution and programs activities. Also, the successful launch of the INL/A Worldwide Aviation Support Services (WASS) program, which achieved full run-rate in July, contributed to the top line.
Segment Details
In the fiscal first quarter, revenues from the Aviation Services segment summed $438.4 million, up 18.1% year over year.
Expeditionary Services garnered revenues of $27.9 million, up 4.9% from $29.2 million in the year-ago quarter.
Highlights of the Release
AAR Corp’s cost of sales in the reported quarter increased 17.5% year over year to $395.1 million.
Selling, general and administrative expenses rose 10% to $48.8 million.
The company incurred interest expenses of $1.6 million compared with $1.7 million in first-quarter fiscal 2018.
Financial Condition
As of Aug 31, 2018, AAR Corp’s cash and cash equivalents amounted to $22.7 million compared with $31.1 million as of May 31, 2018.
As of Aug 31, 2018, net property, plant and equipment were $132.5 million compared with $133.2 million as of May 31, 2018.
As of Aug 31, 2018, total debt increased to $210.7 million from $178.9 million as of May 31, 2018.
Zacks Rank
AAR Corp currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Defense Releases
Hexcel Corporation (HXL - Free Report) reported second-quarter 2018 adjusted earnings of 75 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 1.3%.
Textron Inc.’s (TXT - Free Report) second-quarter 2018 earnings from continuing operations came in at 87 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 24.3%.
Raytheon Company reported second-quarter 2018 adjusted earnings per share from continuing operations of $2.45, outpacing the Zacks Consensus Estimate of $2.32 by 5.6%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>