William Blair Brokers Decrease Earnings Estimates for AAR

Key Points

• William Blair has reduced its Q2 2026 earnings estimates for AAR Corp from $1.11 to $1.01 per share, with the full-year earnings estimate now at $3.77 per share.
• AAR reported revenues of $739.60 million for the last quarter, exceeding analyst expectations of $692.47 million, showing an 11.8% increase from the same quarter last year.
• Despite the earnings estimate cut, AAR received positive ratings upgrades from analysts, with KeyCorp and Truist Financial raising the stock’s price target to between $90.00 and $93.00.

AAR Corp. (NYSE:AIR - Free Report) - Equities researchers at William Blair cut their Q2 2026 earnings per share estimates for AAR in a report issued on Tuesday, October 7th. William Blair analyst L. Dipalma now anticipates that the aerospace company will post earnings of $1.01 per share for the quarter, down from their prior estimate of $1.11. The consensus estimate for AAR's current full-year earnings is $3.77 per share. William Blair also issued estimates for AAR's Q3 2026 earnings at $1.06 EPS, Q4 2026 earnings at $1.22 EPS, FY2026 earnings at $4.36 EPS and FY2027 earnings at $5.17 EPS.

AAR (NYSE:AIR - Get Free Report) last released its earnings results on Tuesday, September 23rd. The aerospace company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.98 by $0.10. AAR had a return on equity of 12.29% and a net margin of 1.01%.The business had revenue of $739.60 million for the quarter, compared to analyst estimates of $692.47 million. During the same quarter in the previous year, the company posted $0.50 earnings per share. The company's revenue for the quarter was up 11.8% compared to the same quarter last year. AAR has set its Q2 2026 guidance at EPS.

AIR has been the topic of a number of other research reports. KeyCorp upped their price objective on AAR from $86.00 to $93.00 and gave the stock an "overweight" rating in a report on Monday, September 29th. Truist Financial upped their price objective on AAR from $81.00 to $90.00 and gave the stock a "buy" rating in a report on Wednesday, September 24th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $85.00 price objective on shares of AAR in a report on Wednesday, September 24th. Wall Street Zen upgraded AAR from a "hold" rating to a "buy" rating in a research report on Sunday, September 28th. Finally, Zacks Research upgraded AAR from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, September 30th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, AAR presently has an average rating of "Buy" and an average price target of $89.33.

AAR Trading Up 1.1%

Shares of AIR stock opened at $83.97 on Thursday. The business's fifty day moving average price is $77.17 and its 200 day moving average price is $68.38. AAR has a 1-year low of $46.51 and a 1-year high of $89.69. The firm has a market capitalization of $3.28 billion, a PE ratio of 107.66 and a beta of 1.52. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.91 and a quick ratio of 1.31.

Hedge Funds Weigh In On AAR

Several institutional investors have recently added to or reduced their stakes in the business. Central Pacific Bank Trust Division increased its stake in AAR by 30.3% in the third quarter. Central Pacific Bank Trust Division now owns 4,561 shares of the aerospace company's stock valued at $409,000 after purchasing an additional 1,061 shares during the last quarter. Nomura Holdings Inc. acquired a new position in AAR in the second quarter valued at $753,000. Geneos Wealth Management Inc. increased its stake in AAR by 200.0% in the second quarter. Geneos Wealth Management Inc. now owns 3,105 shares of the aerospace company's stock valued at $214,000 after purchasing an additional 2,070 shares during the last quarter. Public Sector Pension Investment Board increased its stake in AAR by 8.1% in the second quarter. Public Sector Pension Investment Board now owns 120,964 shares of the aerospace company's stock valued at $8,321,000 after purchasing an additional 9,058 shares during the last quarter. Finally, Tower Research Capital LLC TRC increased its stake in AAR by 277.4% during the second quarter. Tower Research Capital LLC TRC now owns 3,174 shares of the aerospace company's stock worth $218,000 after acquiring an additional 2,333 shares during the last quarter. 90.74% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, Director Jennifer L. Vogel sold 7,000 shares of the company's stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $78.07, for a total value of $546,490.00. Following the sale, the director directly owned 22,970 shares in the company, valued at $1,793,267.90. This represents a 23.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO John Mcclain Holmes III sold 10,000 shares of the company's stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $71.70, for a total value of $717,000.00. Following the completion of the sale, the chief executive officer owned 298,603 shares in the company, valued at $21,409,835.10. This represents a 3.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 95,182 shares of company stock valued at $7,331,452 over the last three months. Insiders own 3.60% of the company's stock.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes.

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