Aviation services provider AAR Corp beat Q1 profit estimates

Overview

• AAR Corp fiscal Q1 sales rise 12% to $740 mln, beating analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q1 increases 27% to $1.08, exceeding estimates, per LSEG data

• Growth driven by Parts Supply segment, up 27%, and strategic investments

Result Drivers

• PARTS SUPPLY GROWTH - Parts Supply segment sales rose 27%, driven by new business and market share expansion in new parts Distribution

• INVESTMENTS - Co made strategic investments in Parts Supply to support growth and acquired Aerostrat to enhance Trax software capabilities

• HIGH DEMAND - High demand for Parts Supply offerings and sold-out capacity in Repair & Engineering indicate strong future sales potential

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for AAR Corp is $83.00, about 7.3% above its September 22 closing price of $76.90

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn8l4HlRa