AAR Beats on Both Top and Bottom Lines
AAR (NYS: AIR) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q3), AAR beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share grew.
Margins contracted across the board.
AAR reported revenue of $534.2 million. The nine analysts polled by S&P Capital IQ hoped for net sales of $517.6 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $451 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The nine earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. GAAP EPS of $0.50 for Q3 were 14% higher than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.3%, 90 basis points worse than the prior-year quarter. Operating margin was 6.7%, 150 basis points worse than the prior-year quarter. Net margin was 3.9%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $548.9 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $1.90.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 287 members rating the stock outperform and 18 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give AAR a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AAR is outperform, with an average price target of $26.67.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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