AAR (NYSE:AIR) Releases Earnings Results, Beats Expectations By $0.12 EPS

Key Points

• AAR beat quarterly earnings estimates, reporting $1.53 EPS versus the $1.41 consensus estimate, a surprise of $0.12 per share.
• The stock rose 4.5% in trading after the report, reaching $141.82 on above-average volume.
• Analyst sentiment remains positive overall, with a consensus Buy rating and average price target of $132.20, though recent price-target changes were mixed.

AAR (NYSE:AIR - Get Free Report) posted its quarterly earnings results on Tuesday. The aerospace company reported $1.53 earnings per share for the quarter, topping analysts' consensus estimates of $1.41 by $0.12, Zacks reports. AAR had a net margin of 5.46% and a return on equity of 12.39%.

AAR Trading Up 4.5%

Shares of NYSE AIR traded up $6.13 during mid-day trading on Tuesday, reaching $141.82. 780,389 shares of the company's stock were exchanged, compared to its average volume of 480,031. The company's 50-day moving average is $124.83 and its 200-day moving average is $114.91. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.23 and a current ratio of 2.70. The firm has a market capitalization of $5.64 billion, a price-to-earnings ratio of 31.45 and a beta of 1.09. AAR has a 52-week low of $71.43 and a 52-week high of $146.75.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. State Street Corp raised its stake in shares of AAR by 17.1% in the 4th quarter. State Street Corp now owns 2,320,927 shares of the aerospace company's stock valued at $192,150,000 after acquiring an additional 339,595 shares during the period. Wellington Management Group LLP lifted its stake in AAR by 17.4% during the fourth quarter. Wellington Management Group LLP now owns 1,745,352 shares of the aerospace company's stock worth $144,498,000 after purchasing an additional 258,577 shares in the last quarter. Franklin Resources Inc. boosted its position in shares of AAR by 36.9% during the third quarter. Franklin Resources Inc. now owns 1,154,167 shares of the aerospace company's stock worth $107,752,000 after buying an additional 311,258 shares during the period. Invesco Ltd. boosted its position in shares of AAR by 7.7% during the fourth quarter. Invesco Ltd. now owns 1,122,792 shares of the aerospace company's stock worth $92,956,000 after buying an additional 80,265 shares during the period. Finally, Fuller & Thaler Asset Management Inc. grew its stake in shares of AAR by 22.3% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 672,877 shares of the aerospace company's stock valued at $55,707,000 after buying an additional 122,672 shares in the last quarter. Hedge funds and other institutional investors own 90.74% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Jefferies Financial Group increased their price target on AAR from $150.00 to $155.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Wall Street Zen cut AAR from a "strong-buy" rating to a "buy" rating in a report on Sunday, June 14th. Royal Bank Of Canada upped their price objective on shares of AAR from $105.00 to $125.00 and gave the company an "outperform" rating in a report on Wednesday, March 25th. Zacks Research upgraded shares of AAR from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 10th. Finally, KeyCorp downgraded shares of AAR from an "overweight" rating to a "sector weight" rating in a research note on Tuesday, June 30th. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $132.20.

AAR Company Profile

AAR Corp. NYSE: AIR is a global provider of aviation products and services to commercial, government and defense customers. The company offers a comprehensive portfolio of maintenance, repair and overhaul (MRO) solutions, component repair and overhaul, and engineering services designed to support a wide variety of fixed-wing and rotary aircraft. Leveraging FAA and EASA certifications, AAR delivers turnkey maintenance programs and ad hoc repair services that enhance aircraft availability and reliability.

In its Aviation Supply Chain Services segment, AAR sources, stores and distributes parts for both commercial airlines and military operators.

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