AAR Corp. (AIR) Tops Q2 EPS by 4c, Revenues Miss; Raises FY20 EPS/Revenue Mid-Point Guidance

December 19, 2019 4:05 PM EST

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AAR Corp. (NYSE: AIR) reported Q2 EPS of $0.64, $0.04 better than the analyst estimate of $0.60. Revenue for the quarter came in at $493.1 million versus the consensus estimate of $525.21 million.

"This is our sixth consecutive quarter of double-digit sales growth. Revenue in our parts supply and government programs activities remains very strong and we continue to see meaningful recovery in MRO as a result of our labor initiatives. Our focus on integrating our differentiated capabilities across our best-in-class aviation services offering continues to be a successful model for growth," said John M. Holmes, President and Chief Executive Officer of AAR CORP.

Holmes concluded, "The fundamentals of our commercial and government end-markets remain strong and are driving continued demand for our services. I am proud of our team for their successful execution in the first two quarters, and we are excited about the opportunities we see for the balance of the fiscal year."

GUIDANCE:

AAR Corp. sees FY2020 EPS of $2.50-$2.65, versus the consensus of $2.61. AAR Corp. sees FY2020 revenue of $2.15-2.225 billion, versus the consensus of $2.21 billion.

We are raising our financial guidance for Fiscal Year 2020, which now includes sales in the range of $2.150 to $2.225 billion and adjusted diluted earnings per share from continuing operations of $2.50 to $2.65. Our previous guidance included sales in the range of $2.1 to $2.2 billion and adjusted diluted earnings per share from continuing operations of $2.45 to $2.65. Compared to our prior financial guidance, the midpoint of our revised sales guidance increased from $2.150 to $2.188 billion and the midpoint of our revised adjusted diluted earnings per share from continuing operations increased from $2.55 to $2.58. We continue to expect selling, general and administrative expenses to be approximately 10.5% of sales and anticipate an effective tax rate of 24% in Fiscal Year 2020.

For earnings history and earnings-related data on AAR Corp. (AIR) click here.



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