AAR Corp. (AIR) Misses Q3 EPS by 2c; Guides In-Line

March 20, 2014 4:10 PM EDT
AAR Corp. (NYSE: AIR) reported Q3 EPS of $0.45, $0.02 worse than the analyst estimate of $0.47. Revenue for the quarter came in at $474.4 million versus the consensus estimate of $525.63 million.

AAR Corp. sees FY2014 EPS of $1.79-$1.82, versus the consensus of $1.97. AAR Corp. sees FY2014 revenue of $2-2.05 billion, versus the consensus of $2.14 billion.

"After strong second quarter results, we experienced a challenging third quarter in both of our segments," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. "The decline in sales in the Aviation Services segment resulted from lower MRO sales principally due to the completion of a significant engineering services program in the second quarter of fiscal year 2014, and lower landing gear revenues from unfavorable timing of gear removals. Also, as anticipated, our airlift business experienced reduced sales due to a lower number of contracted positions during the period. Finally, we restructured a supply chain management program with a key airline customer converting it from a "Time and Material" based contract to a "Power-by-the-Hour" program. This change reduced revenues and had modest impact on program profitability. In our Technology Products segment, as expected, we experienced lower sales in our mobility products business that were partially offset by sales growth in cargo systems."

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

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