NYSE$AIR

Aar Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

AAR Corp reported Q4 2021 results with increased sales and improved profitability.

AAR Corp reported a 5% increase in consolidated sales to $437.6 million and income from continuing operations of $14.7 million, or $0.41 per diluted share, compared to a loss of $15.0 million, or a loss of $0.43 per diluted share in the prior year quarter. Adjusted diluted earnings per share from continuing operations in the fourth quarter of Fiscal Year 2021 were $0.47 compared to $0.26 in the fourth quarter of the prior year.

  • Consolidated fourth quarter sales increased 5% from the prior year quarter.
  • Consolidated sales to commercial customers increased 3% due to the recovery in the commercial market.
  • Consolidated sales to government customers increased 7% due to strong performance across global government contracts.
  • Gross profit margin increased from 8.7% to 16.4% due to cost reduction and increased operating efficiency.

Headline financials

Total Revenue

$438M

Previous: $417M+5.1%
EPS (adj)

$0.47

Previous: $0.26+80.8%
Operating Margin

4.7%

No prior period
Capital Expenditures

$2.7M

Previous: $5.3M-49.1%
Free Cash Flow

$19.9M

Previous: -$32.5M+161.2%
Net Income

$14.7M

Previous: -$15M+198.0%
Operating Income

$20.6M

Previous: -$15M+237.3%
Gross Profit

$71.8M

Previous: $36.2M+98.3%
Cash & Equivalents

$51.8M

Previous: $405M-87.2%
Total Assets

$1.54B

Previous: $2.08B-25.9%
Stock-Based Comp

$2.4M

Previous: -$3M+180.0%

Revenue & EPS history

AAR Corp · Revenue · Quarterly

$438M

Q4 2021+5.1%vs Q4 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 anticipates continued investment in new and aftermarket parts activities, expansion of their digital offering, pursuing more government business and capitalizing on other opportunities as the market continues to recover.

Tailwinds

  • Continued strong performance across global government contracts and growth in government business
  • Increasing levels of domestic business travel
  • Optimism about the recovery in international markets when restrictions are lifted as vaccines are further deployed
  • Continued strong performance and a full pipeline of opportunities in government end markets
  • Focus on managing working capital to generate cash flow

Headwinds

  • Uncertainty about the pace of recovery in international markets
  • Potential adverse effects from factors impacting the commercial aviation industry
  • Continued impact of the COVID-19 pandemic on air travel and the ability to source parts and components
  • Risk of reduction in sales to U.S. government branches, agencies, and departments
  • Potential non-compliance with laws and regulations related to government contracts

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 2021

Historical avgQ4 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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