What To Expect From AAR’s (AIR) Q2 Earnings
Aviation and defense services provider AAR CORP (NYSE:AIR) will be reporting results this Tuesday afternoon. Here’s what you need to know.
AAR beat analysts’ revenue expectations last quarter, reporting revenues of $845.1 million, up 25.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is AAR a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting AAR’s revenue to grow 21.4% year on year, improving from the 11.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. AAR has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at AAR’s peers in the aerospace and defense segment, only Byrna has reported results so far. It missed analysts’ revenue estimates, posting year-on-year sales declines of 42.5%. The stock was down 34.9% on the results.
Read our full analysis of Byrna’s earnings results here.In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the aerospace and defense stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. AAR’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $137 (compared to the current share price of $135.28).
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