Why AAR's Shares Jumped

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 aviation service provider AAR (NYS: AIR) rose more than 17% after the company released earnings.

So what: Fiscal-fourth-quarter sales rose 15.5% to $563 million and earnings per share were $0.45 after adjusting for special items. Earnings fell a penny short of estimates and the company also declared a $0.075 dividend.

Now what: Management reiterated guidance for fiscal 2013 of $2.1 billion-$2.2 billion in sales and $1.55-$1.65 per share in earnings. With those results shares are still trading well below 10 times forward earnings and the company has a nice 2.3% dividend yield. Revenue and earnings are about flat for next year so I think shares are priced fairly and wouldn't be moving one way or the other on today's relatively ho-hum earnings report.

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The article Why AAR's Shares Jumped originally appeared on Fool.com.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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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