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AAR Corp (AIR) Q2 Earnings Beat Estimates, Sales Rise Y/Y

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AAR Corp. (AIR - Free Report) reported second-quarter fiscal 2022 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 52 cents by1.9%. Earnings recorded a solid surge of 71% from the year-ago quarter.

The company reported GAAP earnings per share (EPS) of 58 cents in the reported quarter compared with 41 cents generated in the prior-year quarter.

Total Sales

In the quarter under review, AAR Corp generated net sales worth $436.6 million. The reported figure missed the Zacks Consensus Estimate of $443 million by 1.4% but rose 8.2% from $403.6 million recorded in the year-ago quarter.

CurtissWright Corporation Price, Consensus and EPS Surprise

CurtissWright Corporation Price, Consensus and EPS Surprise

CurtissWright Corporation price-consensus-eps-surprise-chart | CurtissWright Corporation Quote

Segment Details    

In the fiscal second quarter, sales at the Aviation Services segment totaled $419.3 million, up 8.9% year over year.

Expeditionary Services recorded sales of $17.3 million, down 7% from $18.6 million in the year-ago quarter.

Operational Update

Adjusted gross profit margin in the reported quarter increased to 16.7% from 13.9% in the prior-year quarter. The margin expansion was the result of favorable impacts of the company’s efforts to reduce costs and increase operational efficiency.

SG&A expenses rose 8.3% to $47.1 million in the fiscal second quarter, mainly due to the restoration of temporary compensation reductions that took place last year. Adjusted operating margin increased to 6.1% from 4% in the prior-year quarter. AIR incurred interest expenses of $0.4 million in the fiscal second quarter as compared with $1.3 million in the year-ago quarter.

Financial Details

As of Nov 30, 2021, AAR Corp’s cash and cash equivalents amounted to $42.7 million compared with$51.8 million as of May 31, 2021.

AAR Corp reported long-term debt of $103.2 million as of Nov 30, 2021, down from $133.7 million as of May 31, 2021.

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.

Defense Releases

Curtiss-Wright (CW - Free Report) reported third-quarter 2021 adjusted earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate of $1.80 by 4.4%. Curtiss-Wright’s total sales exceeded the Zacks Consensus Estimate of $601 million by 3.3%.

Curtiss-Wright updated its financial guidance for 2021 and now expects adjusted earnings in the range of $7.20-$7.35 per share compared with the prior-guided range of $7.15-$7.35. In the past year, CW has returned 3.3%.

Raytheon Technologies’(RTX - Free Report) third-quarter 2021 adjusted EPS of $1.26 outpaced the Zacks Consensus Estimate of $1.07 by 17.8%. Raytheon Technologies’ third-quarter sales of $16,213 million missed the Zacks Consensus Estimate of $16,494 million by 1.7%.

Raytheon Technologies raised the earnings guidance for 2021 and tweaked the revenue expectations. The company currently projects adjusted EPS in the range of $4.10-$4.20 compared with the earlier guidance of $3.85-$4.00. It expects to record revenues worth approximately $64.50 billion compared with its earlier projection of $64.4-$65.4billion. In the past year, RTX has returned 18.3%.

Hexcel Corporation (HXL - Free Report) reported third-quarter 2021 adjusted earnings of 13 cents per share, which exceeded the Zacks Consensus Estimate of 8 cents by 62.5%. Net sales for Hexcel Corporation totaled $333.8 million, which missed the Zacks Consensus Estimate of $353 million by 5.3%.

Hexcel continues to withhold its financial guidance due to the market uncertainties arising from the global pandemic. The Zacks Consensus Estimate for 2021has increased 13.6% to 25 cents per share in the last 60 days. HXL has returned 4% in the past year.