Quantcast

AAR Corp (AIR) Q4 Earnings Surpass Estimates, Revenues Lag


Shutterstock photo

AAR Corp . AIR reported fourth-quarter fiscal 2018 adjusted earnings of 54 cents per share, which surpassed the Zacks Consensus Estimate of 52 cents by 3.9%. The adjusted figure reflected a year-over-year improvement of 10.2% from 49 cents in the year-ago quarter.

Excluding one-time items, the company reported earnings of 52 cents from continuing operations compared with 48 cents in fourth-quarter fiscal 2017.

In fiscal 2018, the company's adjusted earnings came in at $1.79 per share, reflecting an annual improvement of 17% from $1.53 generated in fiscal 2017. The bottom-line figure also surpassed the Zacks Consensus Estimate of $1.69 by 6%.

AAR Corp. Price, Consensus and EPS Surprise

AAR Corp. Price, Consensus and EPS Surprise | AAR Corp. Quote



Total Revenues

In the fiscal fourth quarter, net revenues of $473.5 million fell short of the Zacks Consensus Estimate of $476 million by 0.5%. However, the top-line figure increased 5.1% from $450.5 million in the year-ago quarter.

Net revenues in fiscal 2018 totaled $1.75 billion, reflecting an annual improvement of 10% from $1.59 billion generated in fiscal 2017. Nonetheless, the reported figure missed the Zacks Consensus Estimate of $1.82 billion by 3.8%.

Segment Details 

In the reported quarter, revenues from the Aviation Services segment summed $429.6 million, up 2% year over year.

Expeditionary Services garnered revenues of $43.9 million, up 50.3% from $29.2 million in the year-ago quarter.

Highlights of the Release

In the fiscal fourth quarter, AAR Corp's cost of sales increased 4.3% year over year to $388.8 million.

Selling, general and administrative expenses increased 13.6% to $61.9 million.

The company incurred interest expenses of $2.2 million compared with $1.5 million in the year-ago quarter.

Financial Condition

As of May 31, 2018, AAR Corp's cash and cash equivalents were $31.1 million, reflecting a massive improvement from $10.3 million as of May 31, 2017.

As of May 31, 2018, net property, plant and equipment were $133.2 million compared with $117.2 million as of May 31, 2017.

As of May 31, 2018, total debt increased to $178.9 million from $156.2 million as of May 31, 2017.

Dividend & Share Buyback

In fiscal 2018, the company paid dividends of $10.3 million or 30 cents per share. Also, the company repurchased 0.3 million of its shares for $13.1 million.

Zacks Rank & Stock to Consider

AAR Corp currently has a Zacks Rank #4 (Sell).

A better-ranked stock in the same space is Kratos Defense & Security Solutions KTOS , which sports a Zacks Rank #1 (Strong Buy). You can see  the complete list of today's Zacks #1 Rank stocks here .

Kratos Defense & Security Solutions delivered an average positive earnings surprise of 9.52% in the trailing four quarters. The Zacks Consensus Estimate for 2018 earnings moved north 11.8% to 19 cents in the last 90 days.

Other Defense Releases

Raytheon Company RTN reported first-quarter 2018 earnings from continuing operations of $2.20 per share, which outpaced the Zacks Consensus Estimate of $2.10 by 4.8%.

Spirit AeroSystems' SPR first-quarter 2018 earnings came in at $1.10 per share, missing the Zacks Consensus Estimate of $1.35 by 18.5%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AAR Corp. (AIR): Free Stock Analysis Report

Spirit Aerosystems Holdings, Inc. (SPR): Free Stock Analysis Report

Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report

Raytheon Company (RTN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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



This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: AIR , SPR , KTOS , RTN


More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research








Research Brokers before you trade

Want to trade FX?