Core Viewpoint - AAR Corp. (AIR) is positioned as a strong investment option in the aerospace sector due to its robust presence in the MRO market, solid liquidity, and low debt levels [1][2]. Financial Performance - The Zacks Consensus Estimate for fiscal 2025 earnings per share is 2.70 billion, indicating a year-over-year growth of 16.4% [3]. - AIR has delivered an average earnings surprise of 1.80% over the trailing four quarters [4]. Debt Position - AIR's total debt to capital ratio stands at 44.77%, which is better than the industry average of 55.52% [5]. - The times interest earned (TIE) ratio at the end of the first quarter of fiscal 2025 was 2.61, indicating the company can meet its interest payment obligations without difficulties [5]. Liquidity - AIR's current ratio at the end of the fiscal first quarter was 3.06, demonstrating the company's ability to meet future short-term liabilities [6]. MRO Market Focus - The commercial aerospace industry is experiencing increased aircraft utilization, driving demand for maintenance services [7]. - AAR has initiated the construction of additional hangars in Miami, FL, and Oklahoma City, OK, to enhance efficiency and throughput [7]. - The company completed a 36.22 billion, indicating a year-over-year growth of 37.7% [11]. - Curtiss-Wright has an average earnings surprise of 12.78% and a consensus estimate for 2024 sales at 3.89 billion, indicating a year-over-year growth of 31.1% [12].
Here's Why You Should Add AAR Stock to Your Portfolio Right Now