NYSE$AIR

Aar Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported an increase in consolidated sales and adjusted diluted earnings per share, driven by strong performance in USM and new parts distribution, along with the acquisition of Trax.

AAR Corp reported a 15% increase in consolidated sales to $521.1 million and income from continuing operations of $21.8 million, or $0.62 per diluted share, for the third quarter of fiscal year 2023. Adjusted diluted earnings per share were $0.75, compared to $0.63 in the prior year. The company also acquired Trax, a provider of aircraft MRO and fleet management software.

  • Consolidated third quarter sales increased 15% over the prior year quarter.
  • Consolidated sales to commercial customers increased 28% over the prior year quarter, primarily due to further recovery in the commercial market.
  • Adjusted diluted earnings per share from continuing operations in the third quarter of fiscal year 2023 were $0.75, compared to $0.63 in the third quarter of the prior year.
  • Acquired Trax, a provider of aircraft MRO and fleet management software.

Headline financials

Total Revenue

$521M

Previous: $452M+15.2%
EPS (adj)

$0.75

Previous: $0.63+19.0%
Net Leverage

0.75

No prior period
Capital Expenditures

-$22.5M

Previous: -$10.2M-120.6%
Free Cash Flow

-$700K

Previous: $12.3M-105.7%
Net Income

$21.8M

Previous: $22.5M-3.1%
Operating Income

$33.2M

Previous: $29.8M+11.4%
Gross Profit

$94.3M

Previous: $80.4M+17.3%
Cash & Equivalents

$52.7M

Previous: $40.6M+29.8%
Total Assets

$1.67B

Previous: $1.55B+7.8%
Stock-Based Comp

$3.5M

Previous: $1.1M+218.2%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$521M

Q3 2023+15.2%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

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

  • Expeditionary Services
    $54.3M

Forward guidance

AAR is encouraged by the optimism from airline customers regarding the recovery in air travel, which continues to drive demand. The company's strong balance sheet will allow them to continue making strategic investments, such as the acquisition of Trax, to support long-term growth.

Tailwinds

  • Strong operating margin performance
  • Positive cash flows
  • Optimism from airline customers regarding the recovery in air travel
  • Robust pipeline of opportunities across commercial and government end markets
  • Strong balance sheet to support strategic investments

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 2023

Historical avgQ3 2023

+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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