Illinois-based aerospace/defense products and services
) posted its fiscal second-quarter 2013 (ended November 30, 2012)
financial results. The company reported earnings per share of 44
cents, up 2.3% compared with 43 cents earned in the year-ago
quarter. It also surpassed the Zacks Consensus Estimate of 41
cents by 7.3%.
In the fiscal second quarter of 2013, consolidated sales were
$512.8 million, up 6.4% year over year. Sales were driven by
healthy share gains in commercial aviation services. However,
revenue fell short of the Zacks Consensus Estimate of $550.0
During the second quarter of 2013, the company reclassified
its revenue segments comprising Aviation Supply Chain, Government
and Defense Services, Maintenance, Repair and Overhaul (MRO) and
Structures and Systems to form two categories, namely; Aviation
Services and Technology Products.
In the quarter, Aviation Services segment represented 76.2% of
the revenue, standing at $390.8 million. The revenue denoted an
increase of 3.7% from the year-ago comparable quarter revenue of
Technology Products segment contributed 23.8% of the revenue
in the quarter, corresponding to $122.0 million, up 16.0% year
Cost of sales in the reported quarter spiked 5.5% year over
year to $425.4 million and represented 83% of total revenue.
Selling, general and administrative expense was $50.8 million, up
13.9% year over year.
The company's operating margin increased to 7.4% in the
reported quarter from 7.1% in the year-ago comparable
Balance Sheet/Cash Flow
Exiting the fiscal second quarter 2013, AAR Corp's cash and
cash equivalents were approximately $69.2 million, a hike of 2.2%
compared with the previous quarter. Net property, plant and
equipment were $373.1 million, flat compared to the sequential
preceding quarter. Total debt balance stood at $778.9
Cash flow from operations in the quarter was $27.1 million and
capital spending was roughly $8.1 million. During the quarter,
the company expended around $8.4 million to repurchase 620,000
shares and paid dividends totaling $3.0 million.
Management revised its earnings per share guidance for fiscal
2013 to $1.70-$1.80 range compared with $1.60-$1.70 range
expected earlier. However, the company maintains a revenue
guidance of $2.1 billion to $2.2 billion.
Currently, AIR has a Zacks #3 Rank, which translates into a
short-term (1-3 months) Hold rating. The company's prime
Lockheed Martin Corporation
) have Zacks #3 rating.
AAR CORP (AIR): Free Stock Analysis Report
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LOCKHEED MARTIN (LMT): Free Stock Analysis
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