AAR Beats on Revenue, Matches Expectations on EPS

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

AAR (NYS: AIR) reported earnings on Dec. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q2), AAR beat slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share grew slightly.

Gross margins shrank, operating margins were steady, and net margins dropped.

Revenue details
AAR chalked up revenue of $476 million. The nine analysts polled by S&P Capital IQ predicted revenue of $471 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.45. The nine earnings estimates compiled by S&P Capital IQ averaged $0.45 per share on the same basis. GAAP EPS of $0.43 for Q2 were 1.6% higher than the prior-year quarter's $0.42 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 16.2%, 40 basis points worse than the prior-year quarter. Operating margin was 7.1%, about the same as the prior-year quarter. Net margin was 3.7%, 10 basis points worse than the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $511 million. On the bottom line, the average EPS estimate is $0.49. (There are nine revenue estimates and nine EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $2.1 billion. The average EPS estimate is $2.12. (There are nine revenue estimates and eight EPS estimates.)

Investor sentiment
The stock has a three-star rating at Motley Fool CAPS, with 288 members out of 305 rating the stock outperform, and 17 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give AAR a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AAR is buy, with an average price target of $28.44.

At the time this article was published

Copyright © 1995 - 2011 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