Stock Story -
Aviation and defense services provider AAR CORP (NYSE:AIR) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
AAR beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $661.7 million, up 20.4% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ Integrated Solutions revenue estimates but a miss of analysts’ adjusted operating income estimates.
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This quarter, analysts are expecting AAR’s revenue to grow 19.9% year on year to $654.1 million, improving from the 16.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AAR has missed Wall Street’s revenue estimates three times over the last two years.
With AAR being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for aerospace and defense stocks. However, the whole sector has faced a sell-off over the last month with stocks in AAR’s peer group down 5.8% on average. AAR is down 4.7% during the same time and is heading into earnings with an average analyst price target of $81 (compared to the current share price of $62.85).