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

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AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2022 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 49 cents by6.1%. Earnings recorded a whopping surge of 206% from the year-ago quarter.

Total Sales

In the quarter under review, net sales totaled $455.1 million. The reported figure outpaced the Zacks Consensus Estimate of $438 million by 3.9% and it rose 14% from $400.8 million recorded in the year-ago quarter.

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 first quarter, sales at the Aviation Services segment summed $435.6 million, up 19.8% yearoveryear.
 
Expeditionary Services recorded sales of $19.5 million, down 47.6% from $37.2 million in the year-ago quarter.

Operational Update

The gross profit margin in the reported quarter increased to 16.1% from 13% in the prior-year quarter. The margin expansion primarily resulted from the favorable impactsofthe company’s effort to reduce costs and increase operational efficiency.
 
Selling, general and administrative expenses rose 8.8% to $49.3 millionin the fiscal first quarter mainly due to the restoration of temporary compensation reductions. Adjusted operating margin increased to 5.5% from 2.5% in the prior-year quarter. The company incurred interest expenses of $0.7 million in the fiscal first quarter as compared with $1.6 million in the year-ago quarter.

Financial Details

As of Aug 31, 2021, AAR Corp’s cash and cash equivalents amounted to $48.8 million compared with$51.8 million as of May 31, 2021.
AAR Corp reported long-term debt of $127.6 million as of Aug 31, 2021, down from $133.7 million as of May 31, 2021.

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

Lockheed Martin Corp. (LMT - Free Report) reported second-quarter2021 adjusted earnings of $7.13 per share, which surpassed the Zacks Consensus Estimateof $6.51 per share by 9.5%.
 
Hexel Corporation (HXL - Free Report) reported second-quarter 2021 adjusted earnings of 8 cents per share, which surpassed the Zacks Consensus Estimate of a penny.
 
General Dynamic Corporation (GD - Free Report) reported second-quarter 2021 earnings from continuing operations of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.52 per share by 3.6%.