NYSE$AIR

Aar Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

AAR Corp reported a decrease in sales and a loss from continuing operations due to the impact of COVID-19 on commercial sales, but saw growth in government sales.

AAR Corp reported a decrease in consolidated sales by 26% compared to the prior year quarter. The company had a loss from continuing operations of $13.9 million, or $0.40 per diluted share, compared to income from continuing operations of $17.1 million, or $0.49 per diluted share, in the prior year. The adjusted diluted earnings per share from continuing operations were $0.17 compared to $0.57 in the prior year. Consolidated sales to commercial customers decreased 48%, while sales to government customers increased 10%.

  • Consolidated sales decreased 26% from the prior year quarter.
  • Sales to commercial customers decreased 48% due to the continued impact of COVID-19.
  • Sales to government customers increased 10% due to strong performance on existing programs and new contract awards.
  • Gross profit margins decreased to 12.1% from 15.1% due to reduced commercial volumes.

Headline financials

Total Revenue

$401M

Previous: $542M-26.0%
EPS (adj)

$0.17

Previous: $0.57-70.2%
Capital Expenditures

-$3.3M

Previous: -$4.5M+26.7%
Free Cash Flow

-$17.8M

Previous: -$100K-17700.0%
Net Income

-$14.5M

Previous: $4.4M-429.5%
Operating Income

$16.3M

Previous: $11M+48.2%
Gross Profit

$48.6M

Previous: $81.6M-40.4%
Cash & Equivalents

$108M

Previous: $39.9M+169.9%
Total Assets

$1.71B

Previous: $1.68B+1.8%
Stock-Based Comp

$2.7M

Previous: $4.3M-37.2%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$401M

Q1 2021-26%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

AAR Corp · $54.3M total across 1 segment · Q4 2020

  • Expeditionary Services
    $54.3M

Forward guidance

While the environment for the airline industry remains uncertain, AAR Corp is focused on managing working capital and is pleased with their ability to generate positive cash flow in the quarter. They were also able to make certain investments to support their long-term growth. AAR Corp is encouraged by the stability they have recently seen in their commercial business and the continued growth in their government business.

Tailwinds

  • Focused on managing working capital.
  • Pleased with ability to generate positive cash flow.
  • Able to make certain investments to support long-term growth.
  • Encouraged by stability in commercial business.
  • Continued growth in government business.

Headwinds

  • Environment for the airline industry remains uncertain.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.5%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.9%

Avg return

30 days after

57%

39 / 68 earnings

Positive

+24.5%

Q3 2020

Best reaction

-16.4%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-3.1%+2.5%
Q2 2026+0.9%+9.8%+26.4%
Q1 2026+4.3%+12.2%+10.4%
Q4 2025+2.0%+9.8%+2.7%
Q3 2025-16.4%-15.7%-22.7%
Q2 2025+8.0%+9.0%+9.5%
Q1 2025-4.7%-6.6%-11.2%
Q4 2024-13.2%-8.8%-14.9%
Q3 2024-6.6%-6.8%-0.4%
Q2 2024-10.4%-10.1%-17.1%
Q1 2024-1.1%-2.9%-5.4%
Q4 2023+0.6%+2.7%+0.6%
Q3 2023+6.6%+5.4%+5.1%
Q2 2023-3.3%-3.8%+7.7%
Q1 2023-9.3%-10.1%+9.7%
Q4 2022-8.2%-6.1%+3.4%
Q3 2022+9.1%+10.3%+7.2%
Q2 2022+7.5%+8.7%+15.4%
Q1 2022+1.7%-0.3%+8.1%
Q4 2021+9.1%+6.3%-6.2%
Q3 2021-2.1%+3.1%-4.2%
Q2 2021+2.6%+4.6%+11.4%
Q1 2021+11.8%+9.3%+17.7%
Q4 2020+4.5%-1.1%+5.8%
Q3 2020+24.5%+36.2%+25.4%
Q2 2020+14.9%+6.2%+1.4%
Q1 2020-5.9%-6.2%-7.4%
Q4 2019+9.6%+5.9%+5.3%
Q3 2019-5.6%-7.3%-6.3%
Q2 2019-1.6%-9.0%-6.0%
Q1 2019+8.1%+6.4%+1.0%
Q4 2018-10.5%-5.1%-3.1%
Q3 2018+2.1%-2.1%+6.1%
Q2 2018-6.6%-6.7%-2.9%
Q1 2018+6.4%+1.1%+5.3%
Q4 2017+5.6%+6.7%+0.1%
Q3 2017+0.5%-0.3%+1.1%
Q2 2017-9.0%-9.1%-14.8%
Q1 2017+5.8%+4.7%+12.5%
Q4 2016-5.3%-2.8%-1.3%
Q3 2016+3.7%
Q2 2016+5.2%
Q1 2016-11.6%
Q4 2015+3.6%
Q3 2015-6.8%
Q2 2015-3.3%
Q1 2015-11.5%
Q4 2014+7.4%
Q3 2014-7.4%
Q2 2014-4.4%
Q1 2014-8.2%
Q4 2013-0.9%
Q3 2013+8.1%
Q2 2013+18.0%
Q1 2013-5.6%
Q4 2012+9.7%
Q3 2012-1.5%
Q2 2012+1.1%
Q1 2012-2.6%
Q4 2009+2.2%
Q4 2011+2.2%
Q3 2011+0.3%
Q3 2010+0.3%
Q2 2010+0.4%
Q2 2011+0.4%
Q1 2010+4.3%
Q4 2010+4.3%
Q1 2011+4.3%

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