NEW YORK (AP) -- Shares of AAR Corp., which sells aviation services and technology to aerospace and defense companies, jumped 10 percent Wednesday after the company reported better-than-expected fiscal third-quarter results and boosted its profit guidance for the year
THE SPARK: For the quarter ended Feb. 28, AAR earned $18.4 million, or 46 cents per share, down from $20.6 million, or 50 cents per share, in the same quarter a year earlier. The prior-year period included a tax benefit of 9 cents per share. Revenue fell 3 percent to $520.2 million.
Analysts, on average, expected earnings of 43 cents per share on $517.6 million in revenue, according to FactSet.
The company also boosted its full-year profit prediction to a range of $1.78 to $1.82 per share. Revenue is expected to total about $2.15 billion. Analysts expect earnings of $1.79 per share on $2.13 billion in revenue.
THE BIG PICTURE: AAR said aviation services sales rose 9 percent to $408.2 million, while sales of technology products dropped 30 percent to $112 million.
Commercial sales rose 7 percent on higher demand at the company's parts supply businesses and airframe maintenance centers. Sales to government and defense customers fell 15 percent, mainly as a result of lower revenue from mobility products such as mobile container units and air cargo pallet systems.
THE SHARES: Up $1.72, or 9.6 percent, to $19.70 in afternoon trading, after peaking at $20.03 earlier. Over the past 52 weeks, the company's shares have traded between $10 and $21.99.
Since the beginning of this year, AAR shares have lost about 4 percent of their value.
- Investment & Company Information