AAR Closes PFW Aerospace Assets Buy - Analyst Blog


Telair International GmbH, a wholly owned subsidiary of AAR Corp. ( AIR ) closed the acquisition of cargo loading system assets of Speyer, Germany-based PFW Aerospace GmbH.  The acquisition, which was announced early this month, was funded through available cash.

The acquisition includes the cargo loading system business for the Airbus A320 family as well as aftermarket spares for additional legacy PFW cargo loading systems produced for other Airbus podiums.  Telair will transfer the assets to, and perform operations at, its Miesbach, Germany facility.

The acquisition intends to boost Telair's market position as a supplier of cargo loading and baggage handling systems. Miesbach, Germany-based Telair holds a leading position in designing as well as manufacture of cargo loading systems. This unit is also known for its support services of cargo loading systems for wide-body and narrow-body aircraft, including in the most current and next-generation passenger and freighter models.

There was no earnings momentum at AAR Corp. over the last 60 days. With optimism over the current acquisition we expect analysts to raise their estimates. AAR Corp. currently carries a Zacks Rank #3 (Hold).

AAR is scheduled to announce its second quarter fiscal 2014 earnings results on Dec 19, after the market closes. AAR Corp. had delivered positive earnings surprise in the last 4 quarters with an average beat of nearly 9%.

However, we cannot conclusively say whether it will continue with the trend. This is because Expected Surprise Prediction or Earnings ESP, which is currently 0.00%, combined with Zacks Rank #3 lowers the predictive power. However, The Zacks Consensus Estimate for the quarter is currently pegged at 50 cents, reflecting a year-over-year increase of 13.6%.

Some better-ranked aerospace stocks include Alliant Techsystems Inc. ( ATK ), HEICO Corp. ( HEI ), and Hexcel Corp . ( HXL ) While Alliant Techsystems sports a Zacks Rank #1 (Strong Buy), HEICO and Hexcel carry a Zacks Rank #2 (Buy).

AAR CORP (AIR): Free Stock Analysis Report

ALLIANT TECHSYS (ATK): Free Stock Analysis Report

HEICO CORP (HEI): Free Stock Analysis Report

HEXCEL CORP (HXL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AIR , ATK , HEI , HXL



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