AAR Corp. Shares Plunged: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of aerospace and defense supplier AAR Corp. (NYS: AIR) have crash landed today, with shares down by 11% at the low, after the company reported earnings yesterday.

So what: Third-quarter revenue added up to $534.2 million, leading to earnings per share of $0.50, with both figures beating what the market was expecting. The company said the results were "unfavorably affected by aircraft shortages" in its airlift operation within the government and defense services segment, largely due to unscheduled maintenance inspections.

Now what: The aviation supply chain segment was helped by investments that AAR made earlier in the year, while its structures and systems segment put up strong sales growth. CEO David Storch said, "While performance at our airlift operation did not meet our expectations, demand remains strong and we are taking tangible steps to address ongoing aircraft shortages." Storch added that AAR has started focusing more heavily on its precision machining business.

Interested in more info on AAR Corp.? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners