AAR Reports Better Than Expected Q2 Results
AAR Corp. (NYSE:AIR) reported its Q2 results, with EPS of $0.69 coming in better than the Street estimate of $0.68. Revenue was $470 million, beating the Street estimate of $461.73 million.
The company continued to deliver steady margin improvement, with gross margins of 18.8% (compared to 16.7% in Q2/22) and adjusted operating margins of 7.6% (compared to 6.1% in Q2/22).
According to the analysts at RBC Capital, free cash flow was soft in the quarter, but they continue to believe in the organic growth outlook. The analysts said they can appreciate the investments in working capital to support organic growth, but the potential free cash flow upside remains a focus for investors.
| Symbol | Price | %chg |
|---|---|---|
| RTX.BA | 27225 | 0 |
| LMT.BA | 31475 | 0 |
| 329180.KS | 170400 | 3.58 |
| 012450.KS | 275000 | -2.36 |
AAR Shares Surge 5% on Better Than Expected Q3 Revenues
AAR Corp. (NYSE:AIR) shares gained around 5% on Wednesday after the company reported its Q3 results, with EPS of $0.75 meeting the Street estimates. Revenue grew 15% year-over-year to $521 million, beating the Street estimate of $487.4 million.
Commercial sales were up 28% and government sales were down 3%. The company expects similar sales growth results for Q4, driven by a further recovery in commercial, slightly offset by soft government sales.
The company again delivered on margin expansion with adjusted gross margins of 18.1% compared to 17.3% in Q3/22. Management noted that it is submitting a few bids in the hope of generating government contract awards for 2024, but unless something is announced, government is likely to weigh on results in the near term, with flat sales in 2024.
AAR Reports Better Than Expected Q2 Results
AAR Corp. (NYSE:AIR) reported its Q2 results, with EPS of $0.69 coming in better than the Street estimate of $0.68. Revenue was $470 million, beating the Street estimate of $461.73 million.
The company continued to deliver steady margin improvement, with gross margins of 18.8% (compared to 16.7% in Q2/22) and adjusted operating margins of 7.6% (compared to 6.1% in Q2/22).
According to the analysts at RBC Capital, free cash flow was soft in the quarter, but they continue to believe in the organic growth outlook. The analysts said they can appreciate the investments in working capital to support organic growth, but the potential free cash flow upside remains a focus for investors.
AAR Corp Shares Up 6% on Q3 Beat
AAR Corp. (NYSE:AIR) shares were trading more than 6% higher Wednesday afternoon following the company’s Q3 results, with EPS of $0.63 coming in better than the consensus estimate of $0.58. Revenue was $452 million, beating the consensus of $432.5 million.
Aviation sales were up just under 3% sequentially. The company called out continued growth in the MRO business, but softness early in the quarter in its parts business due to the impact of Omicron. The quarter continued the positive margin narrative, but further margin upside should result from volume growth as sales positively inflect in fiscal 2023-year.
