We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AAR Corp. (AIR - Free Report) reported third-quarter fiscal 2022 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by1.6%. Earnings recorded a solid surge of 70.3% from the year-ago quarter.
The company also reported GAAP earnings per share (EPS) of 63 cents in the reported quarter compared with 87 cents generated in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $452.2 million. The reported figure surpassed the Zacks Consensus Estimate of $439 million by 3% and also improved 10.2% from $410.3 million recorded in the year-ago quarter.
In the fiscal third quarter, sales at the Aviation Services segment totaled $438 million, up 12.4% year over year.
Expeditionary Services recorded sales of $14.2 million, down 31.1% from $20.6 million in the year-ago quarter.
Operational Update
Adjusted gross profit margin in the reported quarter improved to 17.3% from 16.1% 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 8.9% to $48.9 million in the fiscal third quarter, mainly due to digital and other investments to support the volume growth. Adjusted operating margin expanded to 6.7% from 5% in the prior-year quarter, driven by the company’s efforts to improve operating efficiency as well as the recovery in commercial sales.
AIR incurred net interest expenses of $0.6 million in the fiscal third quarter compared with $1 million in the year-ago quarter.
Financial Details
As of Feb 28, 2022, AAR’s cash and cash equivalents amounted to $40.6 million compared with $51.8 million as of May 31, 2021.
AAR reported long-term debt of $103.3 million as of Feb 28, 2022, down from $133.7 million as of May 31, 2021.
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%. Its net sales amounted to $17.73 billion, which outpaced the Zacks Consensus Estimate by 0.4%.
Lockheed Martin ended 2021 (on Dec 31, 2021) with $135.36 billion in backlog compared with $147.13 billion at the end of 2020. Its cash from operations at the end of 2021 amounted to $9.22 billion compared with $8.18 billion a year ago.
Raytheon Technologies’ (RTX - Free Report) fourth-quarter 2021 adjusted earnings per share of $1.08 beat the Zacks Consensus Estimate of $1.01 by 6.9%. Its sales of $17,044 million missed the Zacks Consensus Estimate of $17,215 million by 1%.
Raytheon Technologies had cash and cash equivalents of $7,832 million as of Dec 31, 2021, compared with $8,802 million as of Dec 31, 2020. The company currently projects adjusted EPS in the range of $4.60-$4.80 for 2022.
Boeing (BA - Free Report) incurred an adjusted loss of $7.69 per share for fourth-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of 9 cents. Its revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%.
Boeing’s backlog at the end of fourth-quarter 2021 increased to $377.50 billion from $363.40 billion at the end of 2020. The company’s operating cash outflow at the end of 2021 was $3.42 billion compared with $18.41 billion at the end of 2020.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
AAR (AIR) Q3 Earnings Surpass Estimates, Sales Rise Y/Y
AAR Corp. (AIR - Free Report) reported third-quarter fiscal 2022 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by1.6%. Earnings recorded a solid surge of 70.3% from the year-ago quarter.
The company also reported GAAP earnings per share (EPS) of 63 cents in the reported quarter compared with 87 cents generated in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $452.2 million. The reported figure surpassed the Zacks Consensus Estimate of $439 million by 3% and also improved 10.2% from $410.3 million recorded in the year-ago quarter.
AAR Corp. Price, Consensus and EPS Surprise
AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. Quote
Segment Details
In the fiscal third quarter, sales at the Aviation Services segment totaled $438 million, up 12.4% year over year.
Expeditionary Services recorded sales of $14.2 million, down 31.1% from $20.6 million in the year-ago quarter.
Operational Update
Adjusted gross profit margin in the reported quarter improved to 17.3% from 16.1% 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 8.9% to $48.9 million in the fiscal third quarter, mainly due to digital and other investments to support the volume growth. Adjusted operating margin expanded to 6.7% from 5% in the prior-year quarter, driven by the company’s efforts to improve operating efficiency as well as the recovery in commercial sales.
AIR incurred net interest expenses of $0.6 million in the fiscal third quarter compared with $1 million in the year-ago quarter.
Financial Details
As of Feb 28, 2022, AAR’s cash and cash equivalents amounted to $40.6 million compared with $51.8 million as of May 31, 2021.
AAR reported long-term debt of $103.3 million as of Feb 28, 2022, down from $133.7 million as of May 31, 2021.
Zacks Rank
AAR 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 (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%. Its net sales amounted to $17.73 billion, which outpaced the Zacks Consensus Estimate by 0.4%.
Lockheed Martin ended 2021 (on Dec 31, 2021) with $135.36 billion in backlog compared with $147.13 billion at the end of 2020. Its cash from operations at the end of 2021 amounted to $9.22 billion compared with $8.18 billion a year ago.
Raytheon Technologies’ (RTX - Free Report) fourth-quarter 2021 adjusted earnings per share of $1.08 beat the Zacks Consensus Estimate of $1.01 by 6.9%. Its sales of $17,044 million missed the Zacks Consensus Estimate of $17,215 million by 1%.
Raytheon Technologies had cash and cash equivalents of $7,832 million as of Dec 31, 2021, compared with $8,802 million as of Dec 31, 2020. The company currently projects adjusted EPS in the range of $4.60-$4.80 for 2022.
Boeing (BA - Free Report) incurred an adjusted loss of $7.69 per share for fourth-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of 9 cents. Its revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%.
Boeing’s backlog at the end of fourth-quarter 2021 increased to $377.50 billion from $363.40 billion at the end of 2020. The company’s operating cash outflow at the end of 2021 was $3.42 billion compared with $18.41 billion at the end of 2020.