LONDON, UK / ACCESSWIRE / July 18, 2018 / If you want access to our free earnings report on AAR Corp. (AIR), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AIR. AAR reported its fourth quarter fiscal 2018 operating and financial results on July 09, 2018. The airplane maintenance Company surpassed earnings expectation. Additionally, the Company re-affirmed its guidance for FY19. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the fourth quarter fiscal 2018, AAR recorded sales of $473.5 million, up 5.1% from $450.5 million in Q4 FY17, reflecting continued growth in Aviation Services from the Company's industry-leading integrated supply chain solutions and parts supply activities. AAR's reported numbers lagged behind analysts' estimates of $476.2 million.
For Q4 FY18, AAR's consolidated gross profit margins increased to 17.9% from 17.3% in Q4 FY17, driven by strong Aviation Services sales volumes. The reported quarter sales to commercial customers represented 74.1% of consolidated sales compared to 76.2% of consolidated sales in the fourth quarter of last year. Sales to government and defense customers represented 25.9% of consolidated sales compared to 23.8% in the prior year's corresponding quarter.
AAR's selling, general, and administrative (SG&A) expenses as a percentage of sales were 13.1% in Q4 FY18 compared to 12.1% in Q4 FY17. In the reported quarter, the Company incurred approximately $2.5 million of severance and other restructuring costs.
AAR reported income from continuing operations of $18.1 million, or $0.52 per diluted share, in Q4 FY18. For Q4 FY17, the Company reported income from continuing operations of $16.3 million, or $0.48 per diluted share.
ARR's adjusted earnings from continuing operations were $0.54 per share during the reported quarter compared to $0.49 per share in the prior year's same quarter. The Company's earnings surpassed Wall Street's estimates of $0.54 per share.
For full fiscal year 2018, AAR's consolidated sales were $1.75 billion, reflecting an increase of 10.1% over sales of $1.59 billion in FY17.
For FY18, AAR's income from continuing operations was $73.7 million, or $2.11 per diluted share, compared to income from continuing operations of $52.0 million, or $1.51 per share, in FY17.On an adjusted basis, the Company's income from continuing operations was $62.7 million, or $1.79 per diluted share, in FY18 versus income from continuing operations of $52.5 million, or $1.53 per diluted share, in FY17.
AAR's Segment Results
During Q4 FY18, the Aviation Services segment's sales totaled $429.6 million compared to $421.3 million in Q4 FY17. The segment's gross profit came in at $76.4 million in the reported quarter versus $73.4 million in the prior year's comparable quarter.
For Q4 FY18, the Expeditionary services generated sales of $43.9 million compared to $29.2 million in Q4 FY17, while its gross profit came in at $8.3 million versus $4.5 million in the year earlier same quarter.
During FY18, AAR returned $23.4 million to the Company's shareholders through dividends of $10.3 million or $0.30 per share and share repurchases of $13.1 million, or approximately 350,000 shares.
AAR reaffirmed its fiscal year 2019 guidance of sales in the range of $2.1 billion to $2.2 billion, diluted earnings per share from continuing operations in the range of $2.50 to $2.80, and adjusted EBITDA in the band of $180 million to $190 million.
Stock Performance Snapshot
July 17, 2018 - At Tuesday's closing bell, AAR's stock climbed 1.92%, ending the trading session at $46.17.
Volume traded for the day: 172.80 thousand shares.
Stock performance in the last three-month - up 3.24%; previous six-month period - up 12.55%; past twelve-month period - up 25.12%; and year-to-date - up 17.51%
After yesterday's close, AAR's market cap was at $1.51 billion.
Price to Earnings (P/E) ratio was at 26.81.
The stock has a dividend yield of 0.65%.
The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 0.5% at the end of the session.
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