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AAR (AIR) Q1 Earnings Surpass Estimates, Sales Fall Y/Y
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AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2023 adjusted earnings of 61 cents per share, which surpassed the Zacks Consensus Estimate of 58 cents by 5.2%. Earnings surged 17.3% from the year-ago quarter.
The company reported GAAP earnings per share (EPS) of 63 cents compared with 32 cents generated in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $446.3 million. The reported figure missed the Zacks Consensus Estimate by 1.6% and decreased 1.9% from $455.1 million recorded in the year-ago quarter.
In the fiscal first quarter, sales in the Aviation Services segment totaled $424 million, down 2.7% year over year.
Expeditionary Services recorded sales of $22.3 million, up 14.4% from $19.5 million in the year-ago quarter.
Operational Update
The adjusted gross profit margin in the reported quarter improved to 18.1% from 16.1% in the prior-year quarter. The margin expansion was a result of the favorable impacts of the company’s efforts to reduce costs and increase operational efficiency.
SG&A expenses rose 1.6% to $50.1 million in the fiscal first quarter. The adjusted operating margin expanded to 6.9% from 5.5% 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 $1 million in the fiscal first quarter compared with $0.7 million in the year-ago quarter.
Financial Details
As of Aug 31, 2022, AAR’s cash and cash equivalents amounted to $44.3 million compared with $53.5 million as of May 31, 2022.
AAR reported long-term debt of $114.1 million as of Aug 31, 2022, up from $98.9 million as of May 31, 2022.
Lockheed Martin (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.
Lockheed Martin’s top line declined 9.3% from the $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.
AeroVironment (AVAV - Free Report) reported a first-quarter fiscal 2023 loss of 10 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. The company reported a loss of 17 cents in the year-ago quarter.
The company’s net sales improved 7% year over year to $108.5 million in the reported quarter, primarily driven by an increase in service revenues of $2.6 million and product sales of $4.9 million.
Raytheon Technologies’ (RTX - Free Report) second-quarter 2022 adjusted EPS of $1.16 beat the Zacks Consensus Estimate of $1.12 by 3.6%. Moreover, the bottom line improved 13% from the year-ago quarter’s adjusted earnings of $1.03.
Raytheon Technologies had cash and cash equivalents of $4,767 million as of Jun 30, 2022 compared with $7,832 million as of Dec 31, 2021. RTX projects the 2022 adjusted EPS in the range of $4.60-$4.80.
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AAR (AIR) Q1 Earnings Surpass Estimates, Sales Fall Y/Y
AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2023 adjusted earnings of 61 cents per share, which surpassed the Zacks Consensus Estimate of 58 cents by 5.2%. Earnings surged 17.3% from the year-ago quarter.
The company reported GAAP earnings per share (EPS) of 63 cents compared with 32 cents generated in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $446.3 million. The reported figure missed the Zacks Consensus Estimate by 1.6% and decreased 1.9% from $455.1 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 first quarter, sales in the Aviation Services segment totaled $424 million, down 2.7% year over year.
Expeditionary Services recorded sales of $22.3 million, up 14.4% from $19.5 million in the year-ago quarter.
Operational Update
The adjusted gross profit margin in the reported quarter improved to 18.1% from 16.1% in the prior-year quarter. The margin expansion was a result of the favorable impacts of the company’s efforts to reduce costs and increase operational efficiency.
SG&A expenses rose 1.6% to $50.1 million in the fiscal first quarter. The adjusted operating margin expanded to 6.9% from 5.5% 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 $1 million in the fiscal first quarter compared with $0.7 million in the year-ago quarter.
Financial Details
As of Aug 31, 2022, AAR’s cash and cash equivalents amounted to $44.3 million compared with $53.5 million as of May 31, 2022.
AAR reported long-term debt of $114.1 million as of Aug 31, 2022, up from $98.9 million as of May 31, 2022.
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.
Defense Releases
Lockheed Martin (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. However, the bottom line declined 1.6% year over year.
Lockheed Martin’s top line declined 9.3% from the $17.03 billion reported in the year-ago quarter. LMT ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in the backlog compared with $135.23 billion at the end of the first quarter of 2022.
AeroVironment (AVAV - Free Report) reported a first-quarter fiscal 2023 loss of 10 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. The company reported a loss of 17 cents in the year-ago quarter.
The company’s net sales improved 7% year over year to $108.5 million in the reported quarter, primarily driven by an increase in service revenues of $2.6 million and product sales of $4.9 million.
Raytheon Technologies’ (RTX - Free Report) second-quarter 2022 adjusted EPS of $1.16 beat the Zacks Consensus Estimate of $1.12 by 3.6%. Moreover, the bottom line improved 13% from the year-ago quarter’s adjusted earnings of $1.03.
Raytheon Technologies had cash and cash equivalents of $4,767 million as of Jun 30, 2022 compared with $7,832 million as of Dec 31, 2021. RTX projects the 2022 adjusted EPS in the range of $4.60-$4.80.