AAR Corp. (AIR) PT Cut To $42 At Credit Suisse After EPS Miss

Credit Suisse analyst, Robert Spingarn, reiterated his Outperform on AAR Corporation (NYSE: AIR) but cut the price target to $42.00 (from $55.00) after Revenues of $530M narrowly missed consensus EPS of $0.79 included a 19-cent tax benefit; excluding this impact, EPS would have been 14% below forecasts. Higher labor costs weighed on margins which has been a recurring issue with the company.

The analyst stated "Management once again cited a shortage of skilled workers as the key factor behind this quarter’s shortfall. While we appreciate the difficulty involved with sourcing labor in this tight environment, we get the sense the market is beginning to tire of this refrain, and may start
to wonder if wage pressure is obfuscating other weakness". The analyst went on to state "the lingering question is how long MRO will remain under pressure, and if AAR may wind up losing market share to the competitors currently picking up slack in the market".

For an analyst ratings summary and ratings history on AAR Corporation click here. For more ratings news on AAR Corporation click here.

Shares of AAR Corporation closed at $35.10 yesterday.

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