NYSE$AIR

Aar Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

AAR Corp's Q4 earnings were significantly affected by COVID-19, with sales decreasing by 26% compared to the prior year, but government and defense sales grew by 8%.

AAR Corp reported a decrease in sales and a loss from continuing operations due to the impact of COVID-19 and restructuring actions. While commercial airline volumes decreased, government and defense activities saw growth. The company took cost reduction actions and focused on the commercial cargo market to mitigate the impact.

  • Consolidated sales decreased 26% year-over-year due to COVID-19 and grounding of the commercial fleet.
  • Sales to government and defense customers in the Aviation Services segment increased 8% year-over-year.
  • The company executed cost reduction actions to align expenses with revenue.
  • A sole source firm-fixed-price $125 million contract was awarded from the U.S. Air Force to produce and repair 463L cargo pallets.

Headline financials

Total Revenue

$417M

Previous: $563M-26.0%
EPS (adj)

$0.26

Previous: $0.64-59.4%
Capital Expenditures

$5.3M

Previous: $5.1M+3.9%
Free Cash Flow

-$32.5M

Previous: $37.8M-186.0%
Net Income

-$15M

Previous: $22.8M-165.8%
Operating Income

-$15M

No prior period
Gross Profit

$36.2M

Previous: $94.7M-61.8%
Cash & Equivalents

$405M

Previous: $21.3M+1800.0%
Total Assets

$2.08B

Previous: $1.52B+37.0%
Stock-Based Comp

-$3M

Previous: $4.7M-163.8%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$417M

Q4 2020-26%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

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

  • Expeditionary Services
    $54.3M

Forward guidance

Given the continued macro uncertainty from the impact of COVID-19, the company will not be providing financial guidance for Fiscal Year 2021 at this time.

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 Q4 2020

Historical avgQ4 2020

+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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