AAR (AIR) Q4 Earnings Surpass Estimates, Sales Rise Y/Y

Core Insights - AAR Corp. reported fourth-quarter fiscal 2024 adjusted earnings of 88 cents per share, exceeding the Zacks Consensus Estimate of 86 cents by 2.3% and improving 6% year-over-year [1] - The company generated net sales of $656.5 million in the quarter, slightly missing the Zacks Consensus Estimate of$ 660 million by 0.6%, but reflecting an 18.7% increase from $553.3 million in the prior year [2] - AAR's fiscal 2024 adjusted earnings totaled$ 3.33 per share, surpassing the Zacks Consensus Estimate of $3.30 by 0.9% and showing a 16.4% improvement from the previous year [1][2] Sales Performance - In the fourth quarter, AAR's Parts Supply segment sales reached$ 260.3 million, up 9.1% year-over-year [3] - Repair & Engineering segment reported sales of $216.4 million, a significant increase of 51.3% from the prior-year period [3] - Integrated Solutions sales were$ 163.5 million, reflecting a 10.2% increase from the year-ago quarter [3] - Expeditionary Services recorded sales of $16.3 million, down 30.3% year-over-year [3] Operational Metrics - AAR's gross profit margin declined by 10 basis points to 19.4% compared to the prior-year quarter [4] - The adjusted operating margin improved from 7.8% to 9.3%, driven by contributions from the recently acquired Product Support business [4] - Selling, general, and administrative expenses rose to$ 94 million from $70.8 million a year ago [4] - Net interest expense for the quarter increased to$ 18.7 million from $4.7 million in the prior-year period [4] Financial Position - As of May 31, 2024, AAR's cash and cash equivalents were$ 85.8 million, up from $68.4 million a year earlier [5] - The company's long-term debt increased to$ 985.4 million from $269.7 million as of May 31, 2023 [5]