ARR Corporation (AIR) earnings preview: will expeditionary services recover?

8:06 am ET, 07 Jul 2018

AAR Corp. (AIR) is expected to report earnings on July 10 after market close. Shares are trading at 46.49, down -0.32%.

What are the AIR earnings expectations?  What news will the market be watching out for?  

Most recently AAR posted solid financial results, driven by new contracts.  The company is focused on growing sales, combined with margin expansion.  If expeditionary services can recover, AAR will reach its new highs. 

AAR Corporation has a mixed history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Beat analyst EPS estimates by 4 cents ($.47 actuals vs. $.43 forecast) in FQ4’17;
  • Missed analyst EPS estimates by 4 cents ($.27 actuals vs. $.31 forecast) in FQ1’18;
  • Missed analyst EPS estimates by 2 cents ($.35 actuals vs. $.37 forecast) in FQ2’18;
  • Beat analyst EPS estimates by 1 cents ($.49 actuals vs. $.48 forecast) in FQ3’18;

For FQ4’18, EPS is expected to grow by 11% year-over-year to $.52, while revenue is expected to decline 3% year-over-year to $476 million.  


Over the last month, AAR Corp. (AIR) returned +5.83%.

AAR Corp. (AIR) forward P/E ratio is 17.63, and it’s high compared to its industry peers’ P/E ratios.

AAR Corp. (AIR) average analyst price target ($49.83) is 7.18% above its current price ($46.49).

For the latest price and information on AAR Corp., please visit Finstead and search for "AIR price" or "AIR news".

AAR Corp provides products and services to the worldwide aviation, government, and defense markets. The company has two business segments: aviation services (roughly three-fourths of total sales) and expeditionary services. The aviation services segment provides aftermarket support and services for a wide range of aircraft; it sells and leases a variety of new and repaired engine and airframe parts.

Additionally, the company provides customized inventory supply management and logistics to help with planning and maintenance. Expeditionary services contains businesses that provide support services for moving equipment and personnel. The majority of sales derive from the United States, with Europe accounting for the remainder.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

AAR Corp. (AIR) Stock Guide

Updated at: 1:12 am ET, 12 Jul 2020

Before we start: if you're looking for AIR stock price, you can quickly find it out by visiting Finny and typing "AIR quote". If you're looking for a quick scoop on AIR stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AIR". You'll get all this info in one place. Or you can just type "AIR news" to get the latest stock news.

Looking to buy or sell AAR Corp. (AIR)? Interested in getting the full scoop on AIR, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AIR stock guide, we'll address key questions about AIR, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are AIR earnings?
2. When is AIR earnings date?
3. What is AIR dividend?
4. What is AIR dividend yield?
5. What is AIR stock forecast (i.e., prediction)?
6. AIR buy or sell? What is AIR Finny Score?
7. What are the reasons to buy AIR? Why should I buy AIR stock?
8. What are the reasons to sell AIR? Why should I sell AIR stock?
9. What are AIR key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are AIR earnings?

AIR trailing 12-month earnings per share (EPS) is $1.25.

2. When is AIR earnings date?

AIR earnings date is July 21, 2020.

3. What is AIR dividend?

AIR forward dividend is $0.30.

4. What is AIR dividend yield?

AIR forward dividend yield is 1.97%.

Analyst Predictions

5. What is AIR stock forecast (i.e., prediction)?

Based on AIR analyst price targets, AIR stock forecast is $31.00 (for a year from now). That means the average analyst price target for AIR stock is $31.00. The prediction is based on 6 analyst estimates.

The low price target for AIR is $22.00, while the high price target is $56.00.

AIR analyst rating is Hold.

Analysis

6. AIR buy or sell? What is AIR Finny Score?

#{finnyScore:73}Our quantitative analysis shows 8 reasons to buy and 3 reasons to sell AIR, resulting in Finny Score of 73.

7. What are the reasons to buy AIR? Why should I buy AIR stock?

Here are the reasons to buy AIR stock:

  • AIR quarterly revenue growth was 4.50%, higher than the industry and sector average revenue growth (2.53% and 1.65%, respectively). See AIR revenue growth chart.
  • AIR forward dividend yield is 1.97%, higher than the industry (0.56%) and sector (0.50%) forward dividend yields. See AIR forward dividend chart.
  • AIR forward P/E ratio is 16.04, which is low compared to its industry peers’ P/E ratios. See AIR forward P/E ratio chart.
  • AIR Price/Book ratio is 0.56, which is low compared to its industry peers’ P/B ratios. See AIR forward Price/Book ratio chart.
  • AIR PEG ratio (P/E adjusted for growth) is 1.03, which is low compared to its industry peers’ PEG ratios. See AIR PEG chart.
  • AIR average analyst price target ($31.00) is above its current price ($19.01). See AIR price target chart.
  • AIR Enterprise Value/Revenue multiple is 0.40, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See AIR Enterprise Value/Revenue chart.
  • AIR Enterprise Value/EBITDA multiple is 6.13, which is low compared to its industry peers’ Enterprise Value/EBITDA ratios. See AIR Enterprise Value/EBITDA chart.

8. What are the reasons to sell AIR? Why should I sell AIR stock?

Let's look at the reasons to sell AIR stock (i.e., the bear case):

  • AIR profitability is declining. The YoY profit margin change was -0.51 percentage points. See AIR profitability chart.
  • AIR short share of float is 4.88%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See AIR short share of float chart.
  • AIR short interest (days to cover the shorts) ratio is 2.73. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AIR short interest ratio chart.

Key Stats

9. What are AIR key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AIR:

Metrics AIR
Price $18.09
Average Price Target / Upside $31.00 / 71.37%
Average Analyst Rating Hold
Forward Dividend Yield 1.97%
Industry Aerospace & Defense
Sector Industrials
Number of Employees 5,000
Market Cap $529.32M
Forward P/E Ratio 16.04
Price/Book Ratio 0.24
Revenue (TTM) $2.22B
YoY Quarterly Revenue Growth 4.50%
Profit Margin 1.97%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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