AAR (AIR) Q2 Earnings On Par With Estimates, Sales Rise Y/Y
AAR Corp. AIR reported second-quarter fiscal 2024 adjusted earnings of 81 cents per share, which is on par with the Zacks Consensus Estimate. The bottom line improved 17.4% from the year-ago quarter’s level.
The company reported GAAP earnings per share (EPS) of 67 cents compared with 64 cents in the prior-year quarter.
Total Sales
In the quarter under review, AAR generated net sales worth $545.4 million. The reported figure missed the Zacks Consensus Estimate by 2.3% but increased 16.1% from $469.8 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 second quarter, sales in the Parts Supply segment totaled $227.6 million, up 24% year over year.
Repair & engineering reported sales of $145.4 million, up 7.9% from the prior-year period’s level.
Integrated solutions sales came in at $156.6 million compared with $127.3 million in the year-ago period.
Expeditionary Services recorded sales of $15.8 million, down 34.4% from $24.1 million recorded in the year-ago quarter.
Operational Update
The adjusted gross profit margin in the reported quarter increased 18.8% compared with 19% in the prior-year quarter.
Selling, general and administrative expenses amounted to $65.7 million in the current quarter. As a percentage of sales, selling, general and administrative expenses were 12.0% in the current quarter compared with 11.2% in the prior-year quarter. Net interest expense for the quarter totaled $5.6 million compared with $2 million in the year-ago period.
Financial Details
As of Nov 30, 2023, AAR’s cash and cash equivalents amounted to $65.1 million compared with $68.4 million as of May 31, 2023.
The company reported long-term debt of $275 million as of Nov 30, 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.
Other Defense Releases
Lockheed Martin LMT reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%.
The Zacks Consensus Estimate for Lockheed’s 2023 earnings implies growth of 0.07% from the prior-year reported figure. The company delivered an average earnings surprise of 4.4% in the last four quarters.
Leidos Holdings, Inc. LDOS reported third-quarter 2023 adjusted earnings of $2.03 per share, which beat the Zacks Consensus Estimate of $1.64 by 23.8%.
The Zacks Consensus Estimate for Leidos’ 2023 earnings implies growth of 6.4% from the prior-year reported figure. LDOS delivered an average earnings surprise of 11.5% in the last four quarters.
Northrop Grumman NOC reported third-quarter 2023 earnings of $6.18 per share, which beat the Zacks Consensus Estimate of $5.81 by 6.4%.
The Zacks Consensus Estimate for Northrop’s 2023 sales indicates growth of 6.6% from the prior-year reported figure. NOC delivered an average earnings surprise of 6.8% in the last four quarters.
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