AAR (AIR) Tops Q1 Earnings and Revenue Estimates

Company Performance - AAR reported quarterly earnings of $0.85 per share, exceeding the Zacks Consensus Estimate of$ 0.82 per share, and up from $0.78 per share a year ago, representing an earnings surprise of 3.66% [1] - The company posted revenues of$ 661.7 million for the quarter ended August 2024, surpassing the Zacks Consensus Estimate by 2.46%, compared to year-ago revenues of $549.7 million [1] - Over the last four quarters, AAR has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [1] Future Outlook - The sustainability of AAR's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [2] - Current consensus EPS estimate for the coming quarter is$ 0.91 on revenues of $654.63 million, and for the current fiscal year, it is$ 3.72 on revenues of $2.69 billion [4] - The estimate revisions trend for AAR is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [4] Industry Context - The Aerospace - Defense Equipment industry is currently in the top 34% of Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by a factor of more than 2 to 1 [5] - Another company in the same industry, FTAI Aviation, is expected to report quarterly earnings of$ 0.77 per share, reflecting a year-over-year change of +133.3%, with revenues expected to be $429.29 million, up 47.5% from the year-ago quarter [5]