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AAR Corp's (AIR) Q4 Earnings Beat Estimates, Sales Rise Y/Y

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AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2021 adjusted earnings of 47 cents per share, which surpassed the Zacks Consensus Estimate of 44 cents by 6.8%. The figure reflected a year-over-year surge of 80.8% from earnings of 26 cents registered in the year-ago quarter.

Excluding one-time items, the company reported earnings of 42 cents per share from continuing operations against a loss of 43 cents reported in fourth-quarter fiscal 2020.

AAR Corp’s adjusted earnings for fiscal 2021 came in at $1.30 per share, in line with the Zacks Consensus Estimate.

Total Sales

In the quarter under review, net sales totaled $437.6 million. The reported figure outpaced the Zacks Consensus Estimate of $421 million by 3.8% and by 5.1% from $416.5 million recorded in the year-ago quarter.

The year-over-year rise in sales was due to the recovery in the commercial market from the impacts of COVID-19 and continued strong performance across its global government contracts.

However, AAR Corp’s full-year sales came to $1.65 billion, down 20.1% from $2.07 billion reported in the year-ago quarter.

Segment Details

In the fiscal fourth quarter, sales at the Aviation Services segment summed $415.4 million, up 6.5% year over year.

Expeditionary Services recorded sales of $22.2 million, down 15.9% from $26.4 million in the year-ago quarter.

Highlights of the Release

AAR Corp’s cost of sales in the reported quarter fell 3.8% year over year to $365.8 million.

Selling, general and administrative expenses rose 3.2% to $48.8 million.

The company incurred interest expenses of $0.9 million compared with $2.6 million in fourth-quarter fiscal 2020.

AAR Corp. Price, Consensus and EPS Surprise

Financial Condition

As of May 31, 2021, AAR Corp’s cash and cash equivalents amounted to $51.8 million compared with $404.7 million as of May 31, 2020.

As of May 31, 2021, net property, plant and equipment expenses totaled $120 million compared with $135.7 million as of May 31, 2020.

As of May 31, 2021, long-term debt decreased to $133.7 million from $600 million as of May 31, 2020.

Zacks Rank

AAR Corp. currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Defense Releases

Northrop Grumman (NOC - Free Report) is scheduled to release its quarterly results on Jul 29.

Lockheed Martin (LMT - Free Report) is scheduled to release its quarterly results on Jul 26.

Boeing (BA - Free Report) is scheduled to release its quarterly results on Jul 28.

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