Earlier this week,
AAR Corp.
(
AIR
) declared its decision to buy-back shares of up to $50 million
from its shares outstanding in the market. This share repurchase
authorization program replaces the previous one initiated in
2006.
As per this new share repurchase program, AAR will have the
discretionary power to repurchase its common stock under the
prevailing market and business conditions at any time. A Rule
10b-18 can be entered into by the company under its own
jurisdiction for facilitating its share repurchases even under
restricted security laws. The program is also liable to be
terminated at any time the Board of Director wishes to cancel or
discontinue it.
Management averred that the company is in a good position to
buy-back stock judging by its current performances and long-term
targets. The recent trading range of AAR's common stock is also at
a favorable position for repurchasing activities to take place,
according to the company's Chairman and CEO, David P. Storch.
In a separate story, on June 14, 2012, AAR declared preliminary
results of its fourth quarter ending May 31, 2012 and also
announced guidance for fiscal 2013. Among the most important
highlights, management expects total sales to fall within $560
million - $565 million along with diluted earnings per share (EPS)
of 44 cents - 46 cents in its fourth quarter. For fiscal 2013, AAR
expects sales to be within $2.1 billion - $2.2 billion and diluted
of EPS $1.55 - $1.66 for the full fiscal year.
The company should, however, be aware of the ominous competition
prevalent in the industry. Big players to remain wary of in this
regard include
Hexcel Corp.
(
HXL
),
Rolls Royce Holdings plc
(
RYCEY
) and
Teledyne Technologies Inc.
(
TDY
).
At present we have a 'Neutral' recommendation on AAR. The stock
carries a Zacks #4 Rank, which translates into a short-term rating
of 'Sell'.
AAR CORP (AIR): Free Stock Analysis Report
HEXCEL CORP (HXL): Free Stock Analysis Report
(RYCEY): ETF Research Reports
TELEDYNE TECH (TDY): Free Stock Analysis Report
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