AAR Corp. (NYSE:AIR) reported first-quarter fiscal 2017 earnings of 29 cents per share, surpassing the Zacks Consensus Estimate of 28 cents by 3.6%. The reported figure was also up from the year-ago figure of 23 cents.
Total Revenue
AAR Corp. reported net sales of $404.8 million in the first quarter of fiscal 2017, up 4.7% from $386.7 million in the year-ago quarter.
Fiscal first-quarter revenues also beat the Zacks Consensus Estimate of $400 million by 1.2%.
AAR CORP Price, Consensus and EPS Surprise
Segment Details
In the reported quarter, Aviation Services reported revenues of $334.6 million, up 6% year over year. Revenues were driven by the segment’s industry-leading supply chain.
Expeditionary Services garnered revenues of $70.2 million, down a marginal 1% from $70.9 million in the year-ago quarter.
Highlights of the Release
In the fiscal first quarter, AAR Corp.’s cost of sales increased 3.2% year over year to $343.3 million.
Selling, general and administrative expenses increased 12% to $44.8 million, driven by investments in new business development.
The company incurred interest expense of $1.3 million, lower than $1.9 million in the year-ago quarter.
Financial Condition
AAR Corp.’s cash and cash equivalents as of Aug 31, 2016 were $7.9 million, down from $31.2 million as of May 31, 2016.
Net property, plant and equipment were $231.4 million as of Aug 31, 2016, compared with $238.1 million as of May 31, 2016.
As of Aug 31, 2016, total debt increased to $151.6 million from $150.1 million as of May 31, 2016.
Dividend & Share Repurchase History
During the fiscal first quarter, the company paid dividends of $2.6 million, or 7.5 cents per share, and repurchased approximately 619,000 shares for $14.8 million, or $23.94 per share.
Guidance
For fiscal 2017, Diluted earnings per share from continuing operations are still expected in the range of $1.30–$1.40.
Peer Releases
Ducommun Inc. (NYSE:DCO) posted earnings of 34 cents per share in the second quarter of 2016, surpassing the Zacks Consensus Estimate of 28 cents by 21.4%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CAE Inc. (TO:CAE) posted earnings of 20 cents per share in the second quarter of 2016, surpassing the Zacks Consensus Estimate of 16 cents by 25%. The stock carries a Zacks Rank #2 (Buy).
CPI Aerostructures Inc. (NYSE:CVU) posted earnings of 21 cents per share in the second quarter of 2016, surpassing the Zacks Consensus Estimate of 15 cents by 40%. The stock holds a Zacks Rank #2.
Zacks Rank
AAR Corporation currently carries a Zacks Rank #3 (Hold).
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AAR CORP (AIR): Free Stock Analysis Report
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