Aviation services provider AAR Corp beat Q1 profit estimates

Reuters
Sep 24
Aviation services provider AAR Corp beat Q1 profit estimates

Overview

  • AAR Corp fiscal Q1 sales rise 12% to $740 mln, beating analyst expectations, per LSEG data

  • Adjusted EPS for fiscal Q1 increases 27% to $1.08, exceeding estimates, per LSEG data

  • Growth driven by Parts Supply segment, up 27%, and strategic investments

Result Drivers

  • PARTS SUPPLY GROWTH - Parts Supply segment sales rose 27%, driven by new business and market share expansion in new parts Distribution

  • INVESTMENTS - Co made strategic investments in Parts Supply to support growth and acquired Aerostrat to enhance Trax software capabilities

  • HIGH DEMAND - High demand for Parts Supply offerings and sold-out capacity in Repair & Engineering indicate strong future sales potential

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Sales

Beat

$739.60 mln

$688.70 mln (4 Analysts)

Q1 Adjusted EPS

Beat

$1.08

$0.98 (4 Analysts)

Q1 EPS

$0.95

Q1 Net Income

$34.40 mln

Q1 Operating Income

$64.90 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the aerospace & defense peer group is "buy"

  • Wall Street's median 12-month price target for AAR Corp is $83.00, about 7.3% above its September 22 closing price of $76.90

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn8l4HlRa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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