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

AAR Corp. (NYSE:AIR)’s stock price gapped up before the market opened on Wednesday following a stronger than expected earnings report. 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 changing hands.

The aerospace company reported $0.90 EPS for the quarter, beating the consensus estimate of $0.83 by $0.07. AAR had a net margin of 2.67% and a return on equity of 10.22%. 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 previous year, the company posted $0.81 EPS. AAR’s revenue was up 25.8% on a year-over-year basis.

Wall Street Analysts Forecast Growth

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

Hedge Funds Weigh In On AAR

A number of institutional investors have recently modified their holdings of AIR. National Bank of Canada FI acquired a new position in AAR in the 3rd quarter valued at $25,000. Quest Partners LLC acquired a new position in AAR during the 2nd quarter worth $33,000. EverSource Wealth Advisors LLC boosted its holdings in AAR by 43.0% during the second quarter. EverSource Wealth Advisors LLC now owns 778 shares of the aerospace company’s stock valued at $57,000 after acquiring an additional 234 shares during the period. KBC Group NV grew its position in shares of AAR by 32.9% in the third quarter. KBC Group NV now owns 1,324 shares of the aerospace company’s stock valued at $87,000 after purchasing an additional 328 shares during the last quarter. Finally, L & S Advisors Inc acquired a new position in shares of AAR during the 2nd quarter worth about $218,000. Institutional investors own 90.74% of the company’s stock.

AAR Stock Performance

The stock has a market cap of $2.41 billion, a P/E ratio of 36.84 and a beta of 1.61. The firm has a 50 day moving average of $64.56 and a two-hundred day moving average of $65.29. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.45 and a current ratio of 3.06.

AAR Company Profile

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.