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AAR Corp. (AIR) Q1 Earnings Beat Estimates, Sales Fall Y/Y

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AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2021 adjusted earnings of 17cents per share in contrast to the Zacks Consensus Estimate of a loss of 16 cents. The figure reflected a year-over-year decline of 70.2% from earnings of 57 cents registered in the year-ago quarter.

Excluding one-time items, the company reported a loss of 40 cents per share from continuing operations against earnings of 49 cents in first-quarter fiscal 2020.

Total Sales

In the quarter under review, net sales totaled $400.8 million. The reported figure outpaced the Zacks Consensus Estimate of $382 million by 3.5% but plunged 26% from $541.5 million recorded in the year-ago quarter.

The year-over-year decline in sales was due to the continued impact of COVID-19 outbreak.

AAR Corp. Price, Consensus and EPS Surprise

AAR Corp. Price, Consensus and EPS Surprise

AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. Quote

Segment Details   

In the fiscal first quarter, sales at the Aviation Services segment totaled $363.6 million, down 29% year over year.

Expeditionary Services garnered sales of $37.2 million, up 25.3% from $29.7 million in the year-ago quarter.

Highlights of the Release

AAR Corp’s cost of sales in the reported quarter fell23.4% year over year to $352.2 million.

Selling, general and administrative expenses declined 22% to $45.3 million.

The company incurred interest expenses of $1.6 million compared with $2.1 million in first-quarter fiscal 2020.

During the quarter under review, the company paid out cash dividends of $0.1 million.

Financial Condition

As of Aug 31, 2020, AAR Corp’s cash and cash equivalents amounted to $10.7 million compared with $404.7 million as of May 31, 2020.

As of Aug 31, 2020, net property, plant and equipment expenses totaled$127 million compared with $135.7 million as of May 31, 2020.

As of Aug 31, 2020, total debt decreased to $149.3 million from $197.3 million as of May 31, 2020.

Zacks Rank

AAR Corp. currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Industry Players

Other industry participants include Ducommun Incorporated (DCO - Free Report) , Teledyne Technologies (TDY - Free Report) and CurtissWright Corporation (CW - Free Report) .

Ducommun has an average earnings surprise of 60.22% in the trailing four quarters. The Zacks Consensus Estimate for the company’s 2021 earnings indicates year-over-year growth of 8.9%.

Teledyne delivered an average earnings surprise of 11.70% in the trailing four quarters. The Zacks Consensus Estimate for the company’s 2021 earnings indicates year-over-year growth of 16.5%.

CurtissWright has an average earnings surprise of 3.60% in the trailing four quarters. The Zacks Consensus Estimate for the company’s 2021 earnings indicates year-over-year growth of 9%.

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