Illinois-based aerospace/defense products and services supplier,
) posted its fiscal first-quarter 2013 (ended August 31, 2012)
financial results. The company reported earnings per share,
excluding special items, of 45 cents, up 9.8% compared with 41
cents earned in the year-ago quarter.
Result was at the high-end of management's guided range of 42-45
cents; however, it lagged behind the Zacks Consensus Estimate of 46
In fiscal first quarter 2013, consolidated sales were $550.5
million, up 13.4% year over year and above management's guided
range of $540-$550 million. Sales were driven by healthy share
gains in commercial aviation services.
Revenue from the Aviation Supply Chain business (27.0% of total
revenue) was $148.7 million, down 7.7% year over year. Government
and Defense Services revenue (27.4%) of approximately $150.6
million was roughly flat year over year.
Maintenance, Repair and Overhaul (MRO) segment, which accounted
for roughly 19.2% of total revenue, generated $105.5 million, up
13.2% year over year. Structures and Systems revenue was $145.7
million (26.5% of total revenue), up 79.4% year over year.
Cost of sales in the reported quarter spiked 12.3% year over
year to $460.2 million. Selling, general and administrative expense
was $53.3 million, up 23.7% year over year.
The company's operating margin increased to 7.0% in the reported
quarter from 6.8% in the year-ago comparable quarter.
Balance Sheet/Cash Flow
Exiting the fiscal first quarter 2013, AAR Corp's cash and cash
equivalents were approximately $67.7 million, flat compared with
the previous quarter. Net property, plant and equipment were $374.3
million, down $8.6 million in the sequentially preceding quarter.
Total debt balance stood at $787.6 million.
Cash flow from operations in the quarter was $33 million and
capital spending was roughly $11 million. During the quarter, the
company expended roughly $6.1 million to repurchase 475,000 shares
and paid dividends totaling $3.0 million.
Management revised its earnings per share guidance for fiscal
2013 to $1.60-$1.70 range compared with $1.55-$1.65 range expected
Currently, AIR has a Zacks #1 Rank, which translates into a
short-term (1-3 months) Strong Buy rating. The company's prime
) has Zacks #3 (Hold) rating while
Lockheed Martin Corporation
) has Zacks #2 (Buy) rating.
AAR CORP (AIR): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis
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