NYSE$AIR

Aar Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

AAR Corp reported an increase in sales and income from continuing operations compared to the prior year, driven by recovery in the commercial market and cost reduction efforts.

AAR Corp's Q1 2022 consolidated sales increased by 14% to $455.1 million, with income from continuing operations at $11.2 million, or $0.31 per diluted share. Adjusted diluted earnings per share were $0.52, compared to $0.17 in the prior year. The company benefited from a 53% increase in sales to commercial customers and improved gross profit margins.

  • Consolidated sales increased by 14% compared to the prior year quarter.
  • Sales to commercial customers increased by 53% due to recovery in the commercial market.
  • Adjusted diluted earnings per share from continuing operations were $0.52, up from $0.17 in the prior year.
  • Gross profit margins increased to 14.2% from 12.1% due to cost reduction and efficiency improvements.

Headline financials

Total Revenue

$455M

Previous: $401M+13.5%
EPS (adj)

$0.52

Previous: $0.17+205.9%
Operating Margin

3.3%

No prior period
Capital Expenditures

-$2.2M

Previous: -$3.3M+33.3%
Free Cash Flow

$9.3M

Previous: -$17.8M+152.2%
Net Income

$11.5M

Previous: -$14.5M+179.3%
Operating Income

$13M

Previous: $16.3M-20.2%
Gross Profit

$64.6M

Previous: $48.6M+32.9%
Cash & Equivalents

$48.8M

Previous: $108M-54.7%
Total Assets

$1.54B

Previous: $1.71B-10.4%
Stock-Based Comp

$3.1M

Previous: $2.7M+14.8%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$455M

Q1 2022+13.5%vs Q1 2021
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 U.S. exit from Afghanistan will impact the government business in the near term, the company is encouraged by the strong pipeline of offsetting government opportunities and expects continued growth and operating margin expansion in commercial markets as demand increases.

Tailwinds

  • Strong pipeline of offsetting government opportunities.
  • Expect continued growth in commercial markets.
  • Expect operating margin expansion in commercial markets.
  • Continued focus on driving operating efficiency.
  • Continued focus on working capital management.

Headwinds

  • U.S. exit from Afghanistan will impact government business in the near term.
  • Timing of the recovery has been impacted by the Delta variant.
  • Potential impact of the COVID-19 pandemic on air travel.
  • Worldwide commercial activity and our and our customers’ ability to source parts and components.
  • Reduction in the level of sales to the branches, agencies and departments of the U.S. government and their contractors

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 2022

Historical avgQ1 2022

+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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