Wedbush Cuts Price Target & Comments on AAR Corporation (AIR) Ahead of Q1 Results
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Price: $145.25 +1.30%
Rating Summary:
9 Buy, 4 Hold, 0 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Outperform rating on shares of AAR Corporation (NYSE: AIR), but is reducing its price target from $35 to $30 ahead of its first quarter earnings release.
The company is scheduled to release its Q1 results flowing the closing bell tomorrow. The Street is currently estimating EPS of $0.46 with $456.36 million in revenue for the quarter. For 2012, the Street forecasts EPS of $2.19 with $1.94 billion in revenue.
Due to weaker than expected revenues in Structures and Systems segment and MRO segment, the firm is cutting its Q1 and 2012 EPS estimates from $0.45 and $2.11 to $0.40 and $2.01.
The firm notes that airlines have not changed their maintenance schedules due to macro economic fears. To go inline with these trends, Wedbush now anticipates MRO revenues of $90 million for the quarter and $415 million for the year.
To reflect a slower than previously expected ramp on the FMTV program and a weaker ramp on commercial opportunities, Wedbush lowered its revenue assumption on the Structures and Systems segment to $84 million for Q1. The firm also reduced its 2012 total revenue estimate from $1.93 billion to $1.896 billion.
For 2013, the firm forecasts EPS of $2.45 with $2.03 billion in revenue.
Wedbush believes that shares will continue to face pressure over the near term as Q1 results may fall below the Street's expectations, but states that there is still upside potential in the stock due to its commercial exposure.
An analyst at the firm comments, "We believe the Aviation Supply chain business continues to improve, and both the parts and MRO segments will benefit as long as airline maintenance spending holds according to plan."
For more ratings news on AAR Corporation click here and for the rating history of AAR Corporation click here.
Shares of AAR Corporation closed at $21.69 yesterday.
The company is scheduled to release its Q1 results flowing the closing bell tomorrow. The Street is currently estimating EPS of $0.46 with $456.36 million in revenue for the quarter. For 2012, the Street forecasts EPS of $2.19 with $1.94 billion in revenue.
Due to weaker than expected revenues in Structures and Systems segment and MRO segment, the firm is cutting its Q1 and 2012 EPS estimates from $0.45 and $2.11 to $0.40 and $2.01.
The firm notes that airlines have not changed their maintenance schedules due to macro economic fears. To go inline with these trends, Wedbush now anticipates MRO revenues of $90 million for the quarter and $415 million for the year.
To reflect a slower than previously expected ramp on the FMTV program and a weaker ramp on commercial opportunities, Wedbush lowered its revenue assumption on the Structures and Systems segment to $84 million for Q1. The firm also reduced its 2012 total revenue estimate from $1.93 billion to $1.896 billion.
For 2013, the firm forecasts EPS of $2.45 with $2.03 billion in revenue.
Wedbush believes that shares will continue to face pressure over the near term as Q1 results may fall below the Street's expectations, but states that there is still upside potential in the stock due to its commercial exposure.
An analyst at the firm comments, "We believe the Aviation Supply chain business continues to improve, and both the parts and MRO segments will benefit as long as airline maintenance spending holds according to plan."
For more ratings news on AAR Corporation click here and for the rating history of AAR Corporation click here.
Shares of AAR Corporation closed at $21.69 yesterday.
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