AAR Corp (AIR) Q4 Earnings Beat Estimates, Sales Fall Y/Y
AAR Corp. AIR reported fourth-quarter fiscal 2020 adjusted earnings of 26 cents per share, while the Zacks Consensus Estimate was pegged at a loss of 24 cents. The figure reflected a year-over-year decline of 59.4% from earnings of 64 cents registered in the year-ago quarter.
Excluding one-time items, the company reported a loss of 43 cents per share from continuing operations compared with 76 cents in fourth-quarter fiscal 2019.
AAR Corp’s adjusted earnings for fiscal 2020 came in at 71 cents per share, which lagged the Zacks Consensus Estimate of $1.65 by 57% and the year-ago earnings of $2.40.
Total Sales
In the quarter under review, net sales totaled $416.5 million. The reported figure outpaced the Zacks Consensus Estimate of $326 million by 27.8% but plunged 26% from $562.7 million recorded in the year-ago quarter.
The year-over-year decline in sales was due to the impact of COVID-19 and the unprecedented grounding of all commercial fleet.
AAR Corp’s full-year sales came to $2.07 billion, up 1% from $2.05 billion reported in the year-ago quarter.
Segment Details
In the fiscal fourth quarter, sales at the Aviation Services segment summed $390.1 million, down25.3% year over year.
Expeditionary Services garnered sales of $26.4 million, down 35.1% from $40.7 million in the year-ago quarter.
AAR Corp. Price, Consensus and EPS Surprise
AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. Quote
Highlights of the Release
AAR Corp’s cost of sales in the reported quarter fell18.8% year over year to $380.1 million.
Selling, general and administrative expenses declined 25.3% to $47.3 million.
The company incurred interest expenses of $2.6 million compared with $2.1 million in fourth-quarter fiscal 2019.
During the quarter under review, the company paid out cash dividends of $2.6 million.
Financial Condition
As of May 31, 2020, AAR Corp’s cash and cash equivalents amounted to $404.7 million compared with $21.3 million as of May 31, 2019.
As of May 31, 2020, net property, plant and equipment expenses totaled$135.7 million compared with $132.8 million as of May 31, 2019.
As of May 31, 2020, total debt decreased to $602 million from $142.9 million as of May 31, 2019.
Zacks Rank
AAR Corp. currently has a Zacks Rank #4 (Sell).
A Recent Defense Release
Lockheed Martin Corp. LMT reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Upcoming Defense Releases
Northrop Grumman NOC, carrying a Zacks Rank #3 (Hold), will release its results on Jul 30. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boeing BA, carrying a Zacks Rank #4, will release its results on Jul 29.
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