AAR (NYSE:AIR) Shares Gap Up Following Better-Than-Expected Earnings

AAR Corp. (NYSE:AIR) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $61.75, but opened at $66.00. AAR shares last traded at $68.28, with a volume of 121,218 shares.

The aerospace company reported $0.90 earnings per share for the quarter, topping analysts’ consensus estimates of $0.83 by $0.07. AAR had a return on equity of 10.22% and a net margin of 2.67%. The business had revenue of $686.10 million for the quarter, compared to analysts’ expectations of $654.47 million. During the same period in the prior year, the firm earned $0.81 EPS. The business’s quarterly revenue was up 25.8% on a year-over-year basis.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Royal Bank of Canada reissued an “outperform” rating and issued a $75.00 price target on shares of AAR in a research note on Monday, November 4th. Benchmark reissued a “buy” rating and set a $83.00 target price on shares of AAR in a research note on Friday, October 4th. Finally, StockNews.com upgraded shares of AAR from a “sell” rating to a “hold” rating in a research report on Monday, October 21st. One research analyst has rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $81.00.

Institutional Investors Weigh In On AAR

Institutional investors and hedge funds have recently bought and sold shares of the business. National Bank of Canada FI bought a new stake in shares of AAR in the 3rd quarter worth approximately $25,000. Quest Partners LLC acquired a new position in AAR in the second quarter worth approximately $33,000. EverSource Wealth Advisors LLC increased its holdings in shares of AAR by 43.0% in the second quarter. EverSource Wealth Advisors LLC now owns 778 shares of the aerospace company’s stock valued at $57,000 after buying an additional 234 shares in the last quarter. KBC Group NV lifted its position in shares of AAR by 32.9% during the 3rd quarter. KBC Group NV now owns 1,324 shares of the aerospace company’s stock valued at $87,000 after acquiring an additional 328 shares during the last quarter. Finally, L & S Advisors Inc bought a new stake in shares of AAR during the 2nd quarter worth $218,000. 90.74% of the stock is owned by institutional investors and hedge funds.

AAR Stock Up 8.6 %

The stock has a fifty day moving average of $64.56 and a 200-day moving average of $65.29. The firm has a market capitalization of $2.41 billion, a price-to-earnings ratio of 36.84 and a beta of 1.61. The company has a current ratio of 3.06, a quick ratio of 1.45 and a debt-to-equity ratio of 0.81.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes.