AAR Corp. (AIR - Free Report) reported second-quarter fiscal 2024 adjusted earnings of 81 cents per share, which is on par with the Zacks Consensus Estimate. The bottom line improved 17.4% from the year-ago quarter’s level.
The company reported GAAP earnings per share (EPS) of 67 cents compared with 64 cents in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $545.4 million. The reported figure missed the Zacks Consensus Estimate by 2.3% but increased 16.1% from $469.8 million recorded in the year-ago quarter.
Segment Details
In the fiscal second quarter, sales in the Parts Supply segment totaled $227.6 million, up 24% year over year.
Repair & engineering reported sales of $145.4 million, up 7.9% from the prior-year period’s level.
Integrated solutions sales came in at $156.6 million compared with $127.3 million in the year-ago period.
Expeditionary Services recorded sales of $15.8 million, down 34.4% from $24.1 million recorded in the year-ago quarter.
Operational Update
The adjusted gross profit margin in the reported quarter increased 18.8% compared with 19% in the prior-year quarter.
Selling, general and administrative expenses amounted to $65.7 million in the current quarter. As a percentage of sales, selling, general and administrative expenses were 12.0% in the current quarter compared with 11.2% in the prior-year quarter. Net interest expense for the quarter totaled $5.6 million compared with $2 million in the year-ago period.
Financial Details
As of Nov 30, 2023, AAR’s cash and cash equivalents amounted to $65.1 million compared with $68.4 million as of May 31, 2023.
The company reported long-term debt of $275 million as of Nov 30, 2023, up from $269.7 million as of May 31, 2023.
Zacks Rank
AAR 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
Lockheed Martin (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%.
The Zacks Consensus Estimate for Lockheed’s 2023 earnings implies growth of 0.07% from the prior-year reported figure. The company delivered an average earnings surprise of 4.4% in the last four quarters.
Leidos Holdings, Inc. (LDOS - Free Report) reported third-quarter 2023 adjusted earnings of $2.03 per share, which beat the Zacks Consensus Estimate of $1.64 by 23.8%.
The Zacks Consensus Estimate for Leidos’ 2023 earnings implies growth of 6.4% from the prior-year reported figure. LDOS delivered an average earnings surprise of 11.5% in the last four quarters.
Northrop Grumman (NOC - Free Report) reported third-quarter 2023 earnings of $6.18 per share, which beat the Zacks Consensus Estimate of $5.81 by 6.4%.
The Zacks Consensus Estimate for Northrop’s 2023 sales indicates growth of 6.6% from the prior-year reported figure. NOC delivered an average earnings surprise of 6.8% in the last four quarters.
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AAR Corp. (AIR - Free Report) reported second-quarter fiscal 2024 adjusted earnings of 81 cents per share, which is on par with the Zacks Consensus Estimate. The bottom line improved 17.4% from the year-ago quarter’s level.
The company reported GAAP earnings per share (EPS) of 67 cents compared with 64 cents in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $545.4 million. The reported figure missed the Zacks Consensus Estimate by 2.3% but increased 16.1% from $469.8 million recorded in the year-ago quarter.
Segment Details
In the fiscal second quarter, sales in the Parts Supply segment totaled $227.6 million, up 24% year over year.
Repair & engineering reported sales of $145.4 million, up 7.9% from the prior-year period’s level.
Integrated solutions sales came in at $156.6 million compared with $127.3 million in the year-ago period.
Expeditionary Services recorded sales of $15.8 million, down 34.4% from $24.1 million recorded in the year-ago quarter.
Operational Update
The adjusted gross profit margin in the reported quarter increased 18.8% compared with 19% in the prior-year quarter.
Selling, general and administrative expenses amounted to $65.7 million in the current quarter. As a percentage of sales, selling, general and administrative expenses were 12.0% in the current quarter compared with 11.2% in the prior-year quarter. Net interest expense for the quarter totaled $5.6 million compared with $2 million in the year-ago period.
Financial Details
As of Nov 30, 2023, AAR’s cash and cash equivalents amounted to $65.1 million compared with $68.4 million as of May 31, 2023.
The company reported long-term debt of $275 million as of Nov 30, 2023, up from $269.7 million as of May 31, 2023.
Zacks Rank
AAR 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
Lockheed Martin (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%.
The Zacks Consensus Estimate for Lockheed’s 2023 earnings implies growth of 0.07% from the prior-year reported figure. The company delivered an average earnings surprise of 4.4% in the last four quarters.
Leidos Holdings, Inc. (LDOS - Free Report) reported third-quarter 2023 adjusted earnings of $2.03 per share, which beat the Zacks Consensus Estimate of $1.64 by 23.8%.
The Zacks Consensus Estimate for Leidos’ 2023 earnings implies growth of 6.4% from the prior-year reported figure. LDOS delivered an average earnings surprise of 11.5% in the last four quarters.
Northrop Grumman (NOC - Free Report) reported third-quarter 2023 earnings of $6.18 per share, which beat the Zacks Consensus Estimate of $5.81 by 6.4%.
The Zacks Consensus Estimate for Northrop’s 2023 sales indicates growth of 6.6% from the prior-year reported figure. NOC delivered an average earnings surprise of 6.8% in the last four quarters.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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