AAR (AIR) Up 1.3% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for AAR (AIR). Shares have added about 1.3% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is AAR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. AAR Q2 Earnings Surpass Estimates, Sales Increase Year Over YearAAR Corp. reported second-quarter fiscal 2025 adjusted earnings of 90 cents per share, which surpassed the Zacks Consensus Estimate of 83 cents by 8.4%. The bottom line improved 11.1% from the year-ago quarter’s level.The company reported a GAAP loss of 87 cents per share compared to earnings per share of 67 cents in the prior-year quarter.The year-over-year improvement in the bottom line can be attributed to strong demand and driving efficiencies throughout the business.AIR’s Total SalesIn the quarter under review, AAR generated net sales of $686.1 million. The reported figure beat the Zacks Consensus Estimate of $652.6 million by 5.1% and increased 25.8% from $545.4 million recorded in the year-ago quarter.The year-over-year improvement can be attributed to organic growth, and increasing commercial and government sales.AAR: Segment DetailsIn the fiscal second quarter, sales in the Parts Supply segment totaled $273.7 million, up 20.3% year over year.Repair & engineering reported sales of $228.8 million, up 57.4% from the prior-year period’s level.Integrated solutions sales amounted to $163.4 million, up 4.3% from the year-ago quarter’s reported numbers.Expeditionary Services recorded sales of $20.2 million, up 27.8% year over year.AIR’s Operational UpdateAIR’s adjusted operating margin increased from 8.1% to 9.2%, driven by improved profitability in the Repair & Engineering segment.Selling, general and administrative expenses amounted to $133.1 million compared with $65.7 million a year ago.Net interest expenses for the quarter totaled $18.8 million compared with $5.6 million in the year-ago period.Financial Details of AARAs of Nov. 30, 2024, AAR’s cash and cash equivalents amounted to $61.7 million compared with $85.8 million as of May 31, 2024.The company’s long-term debt totaled $986.7 million as of Nov. 30, 2024, up from $985.4 million as of May 31, 2024.In the first six months of fiscal 2025, net cash flow from operating activities amounted to $3.4 million compared with cash outflow of $1.3 million in the year-ago period.How Have Estimates Been Moving Since Then?It turns out, estimates review flatlined during the past month.VGM ScoresCurrently, AAR has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookAAR has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AAR Corp. (AIR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks