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AAR Corp. (AIR - Free Report) reported third-quarter fiscal 2023 adjusted earnings of 75 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 10.3%. Earnings surged 19% from the year-ago quarter.
The company reported GAAP earnings per share (EPS) of 62 cents compared with the 63 cents generated in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $521.3 million. The reported figure surpassed the Zacks Consensus Estimate by 8.2% and increased 15.2% from the $452.2 million recorded in the year-ago quarter.
In the fiscal third quarter, sales in the Aviation Services segment totaled $499.1 million, up 13.9% year over year.
Expeditionary Services recorded sales of $22 million, up 54.9% from $14.2 million in the year-ago quarter.
Operational Update
The adjusted gross profit margin in the reported quarter improved to 18.1% from 17.3% 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 15.9% to $56.7 million in the fiscal third quarter. The adjusted operating margin expanded to 7.6% from 6.7% in the prior-year quarter, driven by growth in commercial sales. AIR incurred net interest expenses of $3.5 million in the fiscal third quarter compared with $0.6 million in the year-ago quarter.
Financial Details
As of Feb 28, 2023, AAR’s cash and cash equivalents amounted to $52.7 million compared with $53.5 million as of May 31, 2022.
AAR reported long-term debt of $185.6 million as of Feb 28, 2023, up from $98.9 million as of May 31, 2022.
Embraer S.A. (ERJ - Free Report) reported fourth-quarter 2022 adjusted earnings of 24 cents per American Depository Share (“ADS”), missing the Zacks Consensus Estimate of 30 cents per ADS. Moreover, the bottom line declined 22.6% from the 31 cents per ADS reported in the prior-year quarter.
Embraer’s fourth-quarter revenues were $1,991.6 million, up 53% year over year, primarily due to higher revenues in all its segments. However, the reported figure lagged the Zacks Consensus Estimate of $2,017 million by 1.3%.
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.75 per share for the fourth quarter of 2022 in contrast to the Zacks Consensus Estimate of earnings of 5 cents. However, the bottom line improved from the year-ago quarter’s loss of $7.69 per share.
In the quarter under review, Boeing’s revenues amounted to $19.98 billion, which surpassed the Zacks Consensus Estimate of $19.43 billion by 2.8%. The top line also improved 35% from the year-ago quarter’s figure of $14.79 billion.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted EPS of $1.27 beat the Zacks Consensus Estimate of $1.24 per share by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s tally.
Raytheon Technologies’ fourth-quarter sales of $18,093 million missed the Zacks Consensus Estimate of $18,196 million by 0.6%. However, the sales figure rose 6% from the $17,044 million recorded in the year-ago quarter.
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AAR Corp. (AIR) Q3 Earnings Surpass Estimates, Sales Rise Y/Y
AAR Corp. (AIR - Free Report) reported third-quarter fiscal 2023 adjusted earnings of 75 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 10.3%. Earnings surged 19% from the year-ago quarter.
The company reported GAAP earnings per share (EPS) of 62 cents compared with the 63 cents generated in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $521.3 million. The reported figure surpassed the Zacks Consensus Estimate by 8.2% and increased 15.2% from the $452.2 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 in the Aviation Services segment totaled $499.1 million, up 13.9% year over year.
Expeditionary Services recorded sales of $22 million, up 54.9% from $14.2 million in the year-ago quarter.
Operational Update
The adjusted gross profit margin in the reported quarter improved to 18.1% from 17.3% 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 15.9% to $56.7 million in the fiscal third quarter. The adjusted operating margin expanded to 7.6% from 6.7% in the prior-year quarter, driven by growth in commercial sales. AIR incurred net interest expenses of $3.5 million in the fiscal third quarter compared with $0.6 million in the year-ago quarter.
Financial Details
As of Feb 28, 2023, AAR’s cash and cash equivalents amounted to $52.7 million compared with $53.5 million as of May 31, 2022.
AAR reported long-term debt of $185.6 million as of Feb 28, 2023, up from $98.9 million as of May 31, 2022.
Zacks Rank
AAR 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
Embraer S.A. (ERJ - Free Report) reported fourth-quarter 2022 adjusted earnings of 24 cents per American Depository Share (“ADS”), missing the Zacks Consensus Estimate of 30 cents per ADS. Moreover, the bottom line declined 22.6% from the 31 cents per ADS reported in the prior-year quarter.
Embraer’s fourth-quarter revenues were $1,991.6 million, up 53% year over year, primarily due to higher revenues in all its segments. However, the reported figure lagged the Zacks Consensus Estimate of $2,017 million by 1.3%.
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.75 per share for the fourth quarter of 2022 in contrast to the Zacks Consensus Estimate of earnings of 5 cents. However, the bottom line improved from the year-ago quarter’s loss of $7.69 per share.
In the quarter under review, Boeing’s revenues amounted to $19.98 billion, which surpassed the Zacks Consensus Estimate of $19.43 billion by 2.8%. The top line also improved 35% from the year-ago quarter’s figure of $14.79 billion.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted EPS of $1.27 beat the Zacks Consensus Estimate of $1.24 per share by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s tally.
Raytheon Technologies’ fourth-quarter sales of $18,093 million missed the Zacks Consensus Estimate of $18,196 million by 0.6%. However, the sales figure rose 6% from the $17,044 million recorded in the year-ago quarter.