AAR Corp. (AIR) Q1 Earnings Beat Estimates, Sales Fall Y/Y
AAR Corp. AIR reported first-quarter fiscal 2021 adjusted earnings of 17cents per share in contrast to the Zacks Consensus Estimate of a loss of 16 cents. The figure reflected a year-over-year decline of 70.2% from earnings of 57 cents registered in the year-ago quarter.
Excluding one-time items, the company reported a loss of 40 cents per share from continuing operations against earnings of 49 cents in first-quarter fiscal 2020.
Total Sales
In the quarter under review, net sales totaled $400.8 million. The reported figure outpaced the Zacks Consensus Estimate of $382 million by 3.5% but plunged 26% from $541.5 million recorded in the year-ago quarter.
The year-over-year decline in sales was due to the continued impact of COVID-19 outbreak.
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 at the Aviation Services segment totaled $363.6 million, down 29% year over year.
Expeditionary Services garnered sales of $37.2 million, up 25.3% from $29.7 million in the year-ago quarter.
Highlights of the Release
AAR Corp’s cost of sales in the reported quarter fell23.4% year over year to $352.2 million.
Selling, general and administrative expenses declined 22% to $45.3 million.
The company incurred interest expenses of $1.6 million compared with $2.1 million in first-quarter fiscal 2020.
During the quarter under review, the company paid out cash dividends of $0.1 million.
Financial Condition
As of Aug 31, 2020, AAR Corp’s cash and cash equivalents amounted to $10.7 million compared with $404.7 million as of May 31, 2020.
As of Aug 31, 2020, net property, plant and equipment expenses totaled$127 million compared with $135.7 million as of May 31, 2020.
As of Aug 31, 2020, total debt decreased to $149.3 million from $197.3 million as of May 31, 2020.
Zacks Rank
AAR Corp. currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Industry Players
Other industry participants include Ducommun Incorporated DCO, Teledyne Technologies TDY and CurtissWright Corporation CW.
Ducommun has an average earnings surprise of 60.22% in the trailing four quarters. The Zacks Consensus Estimate for the company’s 2021 earnings indicates year-over-year growth of 8.9%.
Teledyne delivered an average earnings surprise of 11.70% in the trailing four quarters. The Zacks Consensus Estimate for the company’s 2021 earnings indicates year-over-year growth of 16.5%.
CurtissWright has an average earnings surprise of 3.60% in the trailing four quarters. The Zacks Consensus Estimate for the company’s 2021 earnings indicates year-over-year growth of 9%.
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