AAR Q3 Earnings Surpass Estimates, Sales Increase Year Over Year

AAR Corp. AIR reported third-quarter fiscal 2025 adjusted earnings of 99 cents per share, which surpassed the Zacks Consensus Estimate of 96 cents by 3.1%. The bottom line improved 16.5% from the year-ago quarter’s level of 85 cents.See the Zacks Earnings Calendar to stay ahead of market-making news.The company reported a GAAP loss of 25 cents per share against earnings per share of 39 cents in the prior-year quarter.The year-over-year improvement in the bottom line can be attributed to strong demand.AIR’s Total SalesIn the quarter under review, AAR generated net sales of $678.2 million. The reported figure missed the Zacks Consensus Estimate of $699 million by 3%. However, the figure increased 19.5% from $567.3 million recorded in the year-ago quarter.The year-over-year improvement can be attributed primarily to the acquisition of Product Support and strong demand throughout the company’s Parts Supply segment.AAR Corp. Price, Consensus and EPS Surprise AAR Corp. price-consensus-eps-surprise-chart | AAR Corp. QuoteAAR: Segment DetailsIn the fiscal third quarter, sales in the Parts Supply segment totaled $270.7 million, up 11.7% year over year.Repair & engineering reported sales of $215.9 million, up 53.3% from the prior-year period’s level.Integrated solutions sales amounted to $162.9 million, down 1.6% from the year-ago quarter’s reported number.Expeditionary Services recorded sales of $28.7 million, up 53.5% year over year.AIR’s Operational UpdateAIR’s adjusted operating margin increased from 8.3% to 9.7%, driven by improved profitability in the Repair & Engineering segment.Selling, general and administrative expenses amounted to $61.3 million compared with $77 million a year ago.Net interest expenses for the quarter totaled $18.1 million compared with $11.3 million in the year-ago period. The year-on-year increase in interest expense was primarily due to increased debt levels as a result of funding the Product Support acquisition.Financial Details of AARAs of Feb. 28, 2025, AAR’s cash and cash equivalents amounted to $84.4 million compared with $85.8 million as of May 31, 2024.The company’s long-term debt totaled $1.02 billion as of Feb. 28, 2025, up from $0.985 billion as of May 31, 2024.In the first nine months of fiscal 2025, net cash (used)/ provided from operating activities was ($15.3) million compared with net cash flow of $19.3 million in the year-ago period.AIR’s Zacks RankAAR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming Defense ReleasesOther companies from the same sector that will soon report their quarterly results are discussed below:RTX Corporation RTX will report its first-quarter 2025 results on April 22, before market open. The Zacks Consensus Estimate for RTX’s earnings stands at $1.34 per share, which is in line with the year-ago quarter.The consensus estimate for its sales is pegged at $19.76 billion, indicating year-over-year growth of 2.4%.Northrop Grumman Corporation NOC will report its first-quarter 2025 results on April 22, before market open. The Zacks Consensus Estimate for NOC’s earnings is pegged at $6.33 per share, indicating year-over-year growth of 0.2%.The consensus estimate for sales is pegged at $10.13 billion, which is in line with the year-ago quarter.Textron Inc. TXT will report its first-quarter 2025 results on April 24, before market open. The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.23 per share, indicating year-over-year growth of 2.5%.The consensus estimate for its sales is pegged at $3.31 billion, indicating year-over-year growth of 5.6%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Northrop Grumman Corporation (NOC): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report AAR Corp. (AIR): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks