NYSE$AIR

Aar Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

AAR CORP reported an increase in sales and income from continuing operations compared to the prior year quarter.

AAR CORP reported second quarter Fiscal Year 2022 consolidated sales of $436.6 million and income from continuing operations of $20.8 million, or $0.58 per diluted share. Adjusted diluted earnings per share from continuing operations were $0.53. Consolidated second quarter sales increased 8% over the prior year quarter.

  • Consolidated sales to commercial customers increased 33% over the prior year quarter due to the recovery in the commercial market from the impact of COVID-19.
  • Consolidated sales to government customers decreased 15% primarily related to the level of program activity for the modification and sale of two C-40 aircraft to the U.S. Marine Corps in the prior year quarter.
  • Gross profit margins increased from 17.2% in the prior year quarter to 18.0% in the current quarter.
  • Operating margin increased from 5.4% in the prior year quarter to 6.9% in the current quarter.

Headline financials

Total Revenue

$437M

Previous: $404M+8.2%
EPS (adj)

$0.53

Previous: $0.31+71.0%
Operating Margin

6.9%

No prior period
Capital Expenditures

-$6M

Previous: -$6M+0.0%
Free Cash Flow

$14.8M

Previous: $2.2M+572.7%
Net Income

$20.8M

Previous: $8.2M+153.7%
Operating Income

$28.9M

Previous: $34.2M-15.5%
Gross Profit

$78.4M

Previous: $69.5M+12.8%
Cash & Equivalents

$42.7M

Previous: $110M-61.2%
Total Assets

$1.53B

Previous: $1.67B-8.4%
Stock-Based Comp

$1.6M

Previous: $1.8M-11.1%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$437M

Q2 2022+8.2%vs Q2 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

The company expects adjusted operating margin improvement to continue as higher margin parts activities fully recover.

Tailwinds

  • Company expects adjusted operating margin improvement to continue.
  • Company's higher margin parts activities are expected to fully recover.
  • Demonstrated ability to drive consistent cash flows.
  • Exceptionally strong balance sheet.
  • Deploying capital to fund continued growth.

Headwinds

  • Global recovery in commercial air travel continues to be uneven due to COVID-19 variants.
  • Associated travel restrictions.
  • Potential impacts from COVID-19 pandemic on air travel.
  • Worldwide commercial activity.
  • Ability to source parts and components.

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 2022

Historical avgQ2 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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