Back to top

Image: Bigstock

AAR Corp (AIR) Q4 Earnings Beat Estimates, Sales Rise Y/Y

Read MoreHide Full Article

AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2019 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by 3.2%. The figure reflected a year-over-year improvement of 33.3% from 48 cents registered in the year-ago quarter.

Excluding one-time items, the company reported earnings of 76 cents from continuing operations compared with 52 cents in fourth-quarter fiscal 2018.

AAR Corp’s adjusted earnings for fiscal 2019 came in at $2.36 per share, which lagged the Zacks Consensus Estimate of $2.54 by 7.1% but exceeded the year-ago earnings of $1.73.

AAR Corp. Price, Consensus and EPS Surprise

AAR Corp. Price, Consensus and EPS Surprise

 

AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. Quote

Total Sales

In the quarter under review, net sales totaled $562.7 million. The reported figure outpaced the Zacks Consensus Estimate of $530 million by 6.2% and also increased 18.8% from $473.5 million recorded in the year-ago quarter.

The year-over-year improvement in sales was driven by consistent growth in the company’s parts supply and programs activities.

Segment Details    

In the fiscal fourth quarter, sales at the Aviation Services segment summed $522 million, up 17.6% year over year. The upside was driven by strong demand for both new and aftermarket parts as well as successful execution on the WASS program and other government programs.

Expeditionary Services garnered sales of $49.7 million, up 37% from $29.7 million in the year-ago quarter.

Highlights of the Release

AAR Corp’s cost of sales in the reported quarter increased 20.4% year over year to $468 million.

Selling, general and administrative expenses rose 2.4% to $63.3 million.
The company incurred interest expenses of $2.1 million compared with $2.2 million in fourth-quarter fiscal 2018.

During the quarter under review, the company paid cash dividends of $2.6 million, or 7.5 cents per share. It also repurchased 0.3 million shares for $9.5 million.

Financial Condition

As of May 31, 2019, AAR Corp’s cash and cash equivalents amounted to $21.3 million compared with $31.1 million as of May 31, 2018.

As of May 31, 2019, net property, plant and equipment expenses totaled$132.8 million compared with $133.2 million as of May 31, 2018.

As of May 31, 2019, total debt decreased to $142.9 million from $178.9 million as of May 31, 2018.

Zacks Rank

AAR Corp 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 Corp. (LMT - Free Report) delivered first-quarter 2019 earnings of $5.99 per share, which surpassed the Zacks Consensus Estimate of $4.29 by 39.6%.

Textron Inc. (TXT - Free Report) posted first-quarter 2019 earnings from continuing operations of 76 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 8.6%.

Hexcel Corp. (HXL - Free Report) delivered first-quarter 2019 earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 79 cents by 6.3%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Published in