AAR Earnings: Here’s Why Investors are Not Happy Now

AAR Corp. (NYSE:AIR) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.42%.

AAR Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.45 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Decreased 6.54% to $514.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AAR Corp. reported adjusted EPS income of $0.45 per share. By that measure, the company missed the mean analyst estimate of $0.45. It missed the average revenue estimate of $542.11 million.

Quoting Management: “We are pleased that we achieved our earnings target by delivering better margins and lower costs, while experiencing an overall sales decline primarily due to an expected sales reduction in our Technology Products segment,” said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. “Additionally, we are pleased with the strong cash flow performance of the Company, as free cash flow exceeded net income.”

Key Stats (on next page)…

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