Auriga Reiterates a 'Hold' on AAR Corp (AIR); Q3 Preview: Looking for Growth, But Defense Uncertainty Remains
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Price: $145.25 +1.30%
Rating Summary:
9 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
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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Auriga reiterates a 'Hold' on AAR Corporation (NYSE: AIR) price target of $20.00.
Analyst, Mike Callaghan, said, "After the close, AAR Corp. is expected to report third-quarter 2012 results. We expect EPS to be up 8% to $0.49, as a 13% increase in revenue mostly attributable to acquisitions is partially offset by persistent headwinds in Government and Defense services. While we remain cautious headed into 3Q, we look for direction in defense markets as a key indicator for the next 12 months. Should trends in the defense business show signs of footing, we could see value in shares which are trading at just 9.9x our FY13 estimate, against our coverage list average of 12.4x. Expect 3Q EPS Up 8.3% on Acquired Growth. We expect AIR to report third-quarter 2012 EPS of $0.49, which is up 8.3%, against adjusted EPS from continuing ops in the prior period of $0.45. Upside in the quarter is expected to entirely stem from a 13.3% increase in revenue to $510.8 million, as the acquisition of Telair and Nordisk assets coupled with strength in commercial markets bolster sales, mostly offset by higher interest expense and a modest contraction in operating margin to 7.7%. By comparison, consensus expectations call for EPS of $0.48 on revenue of $505.6 million."
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 $22.68 yesterday.
Analyst, Mike Callaghan, said, "After the close, AAR Corp. is expected to report third-quarter 2012 results. We expect EPS to be up 8% to $0.49, as a 13% increase in revenue mostly attributable to acquisitions is partially offset by persistent headwinds in Government and Defense services. While we remain cautious headed into 3Q, we look for direction in defense markets as a key indicator for the next 12 months. Should trends in the defense business show signs of footing, we could see value in shares which are trading at just 9.9x our FY13 estimate, against our coverage list average of 12.4x. Expect 3Q EPS Up 8.3% on Acquired Growth. We expect AIR to report third-quarter 2012 EPS of $0.49, which is up 8.3%, against adjusted EPS from continuing ops in the prior period of $0.45. Upside in the quarter is expected to entirely stem from a 13.3% increase in revenue to $510.8 million, as the acquisition of Telair and Nordisk assets coupled with strength in commercial markets bolster sales, mostly offset by higher interest expense and a modest contraction in operating margin to 7.7%. By comparison, consensus expectations call for EPS of $0.48 on revenue of $505.6 million."
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 $22.68 yesterday.
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