NYSE$AIR

Aar Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported consolidated sales and income from continuing operations.

AAR CORP reported third quarter Fiscal Year 2021 consolidated sales of $410.3 million and income from continuing operations of $31.1 million, or $0.87 per diluted share. The company's adjusted diluted earnings per share from continuing operations were $0.37. Consolidated sales decreased 26% from the prior year quarter, while sales to government customers increased 4%. Gross profit margins increased from 11.8% to 21.0% due primarily to the CARES Act payroll support.

  • Consolidated third quarter sales decreased 26% from the prior year quarter.
  • Consolidated sales to commercial customers decreased 42% from the prior year quarter primarily due to the continued impact of COVID-19.
  • Consolidated sales to government customers increased 4% as a result of continued strong performance across global government contracts.
  • Gross profit margins increased from 11.8% in the prior year quarter to 21.0% in the current quarter due primarily to the CARES Act payroll support.

Headline financials

Total Revenue

$410M

Previous: $9.8M+4086.7%
EPS (adj)

$0.37

Previous: $0.67-44.8%
Capital Expenditures

-$8.6M

Previous: -$18.3M+53.0%
Free Cash Flow

$19.5M

Previous: -$16M+221.9%
Net Income

$28.1M

Previous: $2.3M+1121.7%
Operating Income

$65M

Previous: -$6.5M+1100.0%
Gross Profit

$86M

Previous: $65.3M+31.7%
Cash & Equivalents

$99.2M

Previous: $37M+168.1%
Total Assets

$1.64B

Previous: $1.83B-10.2%
Stock-Based Comp

$2.3M

Previous: $3.2M-28.1%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$410M

Q3 2021+4,086.7%vs Q3 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

The company is focused on managing working capital to deliver positive cash flow generation and believes it is emerging from the pandemic with an even stronger balance sheet. They are encouraged by the early signs of a commercial market recovery and confident that their differentiated solutions will see greater demand as airline customers continue to increase their flying activity.

Tailwinds

  • The ability to maintain meaningful improvement in adjusted operating margin while in a stable revenue environment resulting from actions taken to reduce costs and increase operating efficiency.
  • The ability to maintain commitment to a low cost structure and expectation for further margin expansion as revenue recovers.
  • The expectation of managing working capital to deliver positive cash flow generation and that emerging from the pandemic will result in an even stronger balance sheet.
  • That we are encouraged by the early signs of a commercial market recovery.
  • The confidence in our belief that our differentiated solutions will see greater demand as our airline customers continue to increase their flying activity.

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 Q3 2021

Historical avgQ3 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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