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 first-quarter fiscal 2024 adjusted earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 6.9%. Earnings surged 27.9% from the year-ago quarter.
The company reported GAAP earnings per share (EPS) of 2 cents compared with 62 cents in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $549.7 million. The reported figure surpassed the Zacks Consensus Estimate by 8.7% and increased 23.2% from the $446.3 million recorded in the year-ago quarter.
In the fiscal first quarter, sales in the Parts Supply segment totaled $236.8 million, up 40.5% year over year.
Repair & engineering reported sales of $137.5 million, up 7.8% from the prior-year period.
Integrated solutions sales came in at $156.3 million compared with $127.8 million in the year-ago period.
Expeditionary Services recorded sales of $19.1 million, down 14.3% from $22.3 million in the year-ago quarter.
Operational Update
The adjusted gross profit margin in the reported quarter improved to 18.4% from 18.1% in the prior-year quarter. The margin expansion was a result of the favorable impacts of operating efficiency on increased sales volumes.
Adjusted SG&A as a percent of sales decreased from 11.2% of sales to 11% in the fiscal first quarter. The adjusted operating margin expanded to 7.3% from 6.9% in the prior-year quarter, driven by growth in commercial sales. AIR incurred net interest expenses of $5.4 million in the fiscal first quarter compared with $1 million in the year-ago quarter.
Financial Details
As of Aug 31, 2023, AAR’s cash and cash equivalents amounted to $70.3 million compared with $68.4 million as of May 31, 2023.
The company reported long-term debt of $304.8 million as of Aug 31, 2023, up from $269.7 million as of May 31, 2023.
Lockheed Martin (LMT - Free Report) : It is likely to report its third-quarter earnings in October 2023. The Zacks Consensus Estimate for LMT’s third-quarter earnings calls for a decline of 2.6% from the prior-year reported figure.
The Zacks Consensus Estimate for Lockheed’s third-quarter sales implies a growth rate of 0.3% from the prior-year reported figure. LMT delivered an earnings surprise of 4.67% in the last reported quarter.
Leidos Holdings, Inc. (LDOS - Free Report) : The company is scheduled to report its third-quarter earnings on Oct 31, 2023. The Zacks Consensus Estimate for LDOS’ third-quarter earnings suggests a growth rate of 3.1% from the prior-year reported figure.
The Zacks Consensus Estimate Leidos’ third-quarter sales implies a growth rate of 4.6% from the prior-year reported figure. LDOS delivered an earnings surprise of 16.13% in the last reported quarter.
Northrop Grumman (NOC - Free Report) : It is slated to report its third-quarter earnings on Oct 26, 2023. The Zacks Consensus Estimate for NOC’s third-quarter earnings suggests a decrease of 2.7% from the prior-year reported figure.
The Zacks Consensus Estimate for Northrop’s third-quarter sales hints at a growth rate of 7.7% from the prior-year reported figure. NOC delivered an earnings surprise of 0.56% in the last reported quarter.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
AAR Corp. (AIR) Q1 Earnings Beat Estimates, Sales Rise Y/Y
AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2024 adjusted earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 6.9%. Earnings surged 27.9% from the year-ago quarter.
The company reported GAAP earnings per share (EPS) of 2 cents compared with 62 cents in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $549.7 million. The reported figure surpassed the Zacks Consensus Estimate by 8.7% and increased 23.2% from the $446.3 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 first quarter, sales in the Parts Supply segment totaled $236.8 million, up 40.5% year over year.
Repair & engineering reported sales of $137.5 million, up 7.8% from the prior-year period.
Integrated solutions sales came in at $156.3 million compared with $127.8 million in the year-ago period.
Expeditionary Services recorded sales of $19.1 million, down 14.3% from $22.3 million in the year-ago quarter.
Operational Update
The adjusted gross profit margin in the reported quarter improved to 18.4% from 18.1% in the prior-year quarter. The margin expansion was a result of the favorable impacts of operating efficiency on increased sales volumes.
Adjusted SG&A as a percent of sales decreased from 11.2% of sales to 11% in the fiscal first quarter. The adjusted operating margin expanded to 7.3% from 6.9% in the prior-year quarter, driven by growth in commercial sales. AIR incurred net interest expenses of $5.4 million in the fiscal first quarter compared with $1 million in the year-ago quarter.
Financial Details
As of Aug 31, 2023, AAR’s cash and cash equivalents amounted to $70.3 million compared with $68.4 million as of May 31, 2023.
The company reported long-term debt of $304.8 million as of Aug 31, 2023, up from $269.7 million as of May 31, 2023.
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.
Upcoming Defense Releases
Lockheed Martin (LMT - Free Report) : It is likely to report its third-quarter earnings in October 2023. The Zacks Consensus Estimate for LMT’s third-quarter earnings calls for a decline of 2.6% from the prior-year reported figure.
The Zacks Consensus Estimate for Lockheed’s third-quarter sales implies a growth rate of 0.3% from the prior-year reported figure. LMT delivered an earnings surprise of 4.67% in the last reported quarter.
Leidos Holdings, Inc. (LDOS - Free Report) : The company is scheduled to report its third-quarter earnings on Oct 31, 2023. The Zacks Consensus Estimate for LDOS’ third-quarter earnings suggests a growth rate of 3.1% from the prior-year reported figure.
The Zacks Consensus Estimate Leidos’ third-quarter sales implies a growth rate of 4.6% from the prior-year reported figure. LDOS delivered an earnings surprise of 16.13% in the last reported quarter.
Northrop Grumman (NOC - Free Report) : It is slated to report its third-quarter earnings on Oct 26, 2023. The Zacks Consensus Estimate for NOC’s third-quarter earnings suggests a decrease of 2.7% from the prior-year reported figure.
The Zacks Consensus Estimate for Northrop’s third-quarter sales hints at a growth rate of 7.7% from the prior-year reported figure. NOC delivered an earnings surprise of 0.56% in the last reported quarter.