AAR Corp. AIR reported third-quarter fiscal 2019 adjusted earnings of 79 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents by 14.5%. The figure reflected a year-over-year improvement of 61% from 49 cents in the year-ago quarter.
Excluding one-time items, the company reported earnings of 78 cents from continuing operations compared with 90 cents in third-quarter fiscal 2018.
In the reported quarter, net sales of $529.5 million missed the Zacks Consensus Estimate of $544 million by 2.7%. However, the top line increased 16% from $456.3 million in the year-ago quarter.
The year-over-year improvement in sales was driven by continued growth in the company’s parts supply and programs activities.
In the fiscal third quarter, sales from the Aviation Services segment summed $497.3 million, up 15.9% year over year.
Expeditionary Services garnered sales of $32.2 million, up 17.9% from $27.3 million in the year-ago quarter.
Highlights of the Release
AAR Corp’s cost of sales in the reported quarter increased 17.3% year over year to $444.2 million.
Selling, general and administrative expenses inched up 2.8% to $54.8 million.
The company incurred interest expenses of $2.4 million compared with $2.2 million in third-quarter fiscal 2018.
During the quarter, the company paid cash dividends of $2.6 million, or $0.075 per share.
AAR Corp. Price, Consensus and EPS Surprise
AAR Corp. Price, Consensus and EPS Surprise | AAR Corp. Quote
As of Feb 28, 2019, AAR Corp’s cash and cash equivalents amounted to $28.9 million compared with $31.1 million as of May 31, 2018.
As of Feb 28, 2019, net property, plant and equipment expenses were $134.4 million compared with $133.2 million as of May 31, 2018.
As of Feb 28, 2019, total debt decreased to $178.5 million from $178.9 million as of May 31, 2018.
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
Hexcel Corporation’s HXL fourth-quarter 2018 adjusted earnings of 82 cents per share outpaced the Zacks Consensus Estimate of 80 cents by 2.5%. The company carries a Zacks Rank #2 (Buy).
FLIR Systems Inc.’s FLIR fourth-quarter 2018 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The company carries a Zacks Rank #3.
Textron TXT reported fourth-quarter 2018 adjusted earnings of $1.15 per share from continuing operations, which exceeded the Zacks Consensus Estimate of 98 cents by 17.3%. The company has a Zacks Rank #3.
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