AAR Corp (AIR) Beats Q3 Earnings Estimates, Revenues Lag

LMT AIR SPR CW

AAR Corp. (AIR - Free Report) reported third-quarter fiscal 2018 adjusted earnings of 49 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents by 2.1%. The adjusted figure reflected a year-over-year improvement of 16.7%, when compared to 42 cents of third-quarter's fiscal 2017.

Excluding one-time items, the company reported earnings of 44 cents from continuing operations in the quarter, compared with 40 cents it generated in the prior-year quarter.

Total Revenues

Net sales came in at $456.3 million in the fiscal third quarter, which missed the Zacks Consensus Estimate of $479 million by 4.8%. However, revenues increased 12.% from $407.2 million in the year-ago quarter.

Segment Details    

In the reported quarter, Aviation Services reported revenues of $426.4 million, up 11.4% year over year.

Expeditionary Services garnered revenues of $29.9 million, up 22.5% from $24.4 million in the year-ago quarter.

Highlights of the Release

In the fiscal third quarter, AAR Corp’s cost of sales increased 11.15% year over year to $378.7 million.

Selling, general and administrative expenses increased 23.9% to $53.4 million.

The company incurred interest expenses of $2.2 million, compared with $1.3 million in the year-ago quarter.

 

AAR Corp. Price, Consensus and EPS Surprise

 

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