NYSE$AIR

Aar Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported consolidated sales and income from continuing operations.

AAR Corp reported a decrease in consolidated sales but an increase in gross profit margins. Sales to government customers increased, while sales to commercial customers decreased due to the continued impact of COVID-19. The company was awarded a five-year, $148.4 million follow-on contract by the Naval Air Systems Command.

  • Consolidated sales decreased 28% from the prior year quarter.
  • Sales to commercial customers decreased 48% due to COVID-19.
  • Sales to government customers increased 13% due to strong contract performance.
  • Gross profit margins increased to 17.2% from 15.3% in the prior year quarter.

Headline financials

Total Revenue

$404M

Previous: $561M-28.0%
EPS (adj)

$0.31

Previous: $0.64-51.6%
Capital Expenditures

-$6M

Previous: -$10.2M+41.2%
Free Cash Flow

$2.2M

Previous: $4M-45.0%
Net Income

$8.2M

Previous: $14.2M-42.3%
Operating Income

$34.2M

Previous: $16.3M+109.8%
Gross Profit

$69.5M

Previous: $85.9M-19.1%
Cash & Equivalents

$110M

Previous: $38.2M+188.0%
Total Assets

$1.67B

Previous: $1.75B-4.9%
Stock-Based Comp

$1.8M

Previous: $2.8M-35.7%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$404M

Q2 2021-28%vs Q2 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

AAR expects improved operating efficiency, growth from new business wins, and commercial market recovery to drive margin expansion.

Tailwinds

  • Improved operating efficiency.
  • Growth from new business wins.
  • Commercial market recovery.
  • Strength of government business.
  • Focus on managing working capital.

Headwinds

  • Factors that adversely affect the commercial aviation industry.
  • The impact of the COVID-19 pandemic on air travel.
  • Worldwide commercial activity.
  • 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 Q2 2021

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro