AAR Corp (AIR) Q1 Earnings Top Estimates On Higher Y/Y Sales
Zacks Investment Research | Sep 25, 2019 09:54PM ET
AAR Corp. (NYSE:AIR) reported first-quarter fiscal 2020 adjusted earnings of 57 cents per share, which surpassed the Zacks Consensus Estimate of 52 cents by 9.6%. The figure reflected a year-over-year improvement of 5.6% from 54 cents reported in the year-ago quarter.
The year-over-year growth can be primarily attributed to solid improvement in sales.
Excluding one-time items, the company reported earnings of 49 cents from continuing operations compared with 54 cents in first-quarter fiscal 2019.
Total Sales
In the reported quarter, net sales of $541.5 million exceeded the Zacks Consensus Estimate of $498 million by 8.7%. The top line also increased 16.1% from $466.3 million in the year-ago quarter.
The year-over-year increase in sales was driven by continued growth in the company’s programs and parts supply activities.
Segment Details
In the fiscal first quarter, revenues from the Aviation Services segment summed $511.8 million, up 16.7% year over year, driven by improved performance in Maintenance, Repair and Overhaul (MRO), acquisition of new government contract awards and continued strong demand for both new and aftermarket parts.
Expeditionary Services generated revenues of $29.7 million, up 6.5% from $27.9 million in the year-ago quarter, led by an increase in volumes from recent contract awards.
Highlights of the Release
AAR Corp’s cost of sales in the reported quarter grew 16.4% year over year to $459.9 million.
Selling, general and administrative expenses rose 20.5% to $58.1 million.
The company incurred interest expenses of $2.1 million compared with $1.6 million in first-quarter fiscal 2019.
AAR Corp. Price, Consensus and EPS Surprise
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