AAR Corp Rises Premarket After Q3 Profit Beats Estimates, Retail’s Bullish

The company posted a net loss of $8.9 million, or $0.25 per share, for the third quarter, compared with a net income of $14.0 million, or $0.39 per share, a year earlier.

AAR Corp (AIR) stock rose 0.7% in premarket trading on Friday after the company’s third-quarter profit topped Wall Street’s expectations.

The aerospace and defense firm posted an adjusted earnings of $0.99 per share for the three months ended Feb. 28, while analysts expected it to post $0.96 per share, according to FinChat data.

It reported quarterly sales of $678.2 million, which fell short of analysts’ estimated $699.1 million.

AAR posted a net loss of $8.9 million, or $0.25 per share, for the third quarter, compared with a net income of $14.0 million, or $0.39 per share, a year earlier.

The company said its third-quarter results included a pre-tax charge of $63.7 million associated with the recently announced divestiture of its Landing Gear Overhaul business.

The company had agreed to sell the business to GA Telesis in a $51 million deal to boost its operating margins.

AAR said sales to government customers rose 15% from a year earlier, primarily due to increased order volume for new parts distribution activities.

The Wood Dale, Illinois-based company also reported a 22% rise in consolidated sales to commercial customers, primarily due to its product support acquisition and strong demand throughout its parts supply segment.

“Demand for our services remains very high, and we anticipate our sales growth to continue,” CEO John Holmes said.

Retail sentiment on Stocktwits moved to ‘bullish’ (73/100) territory from ‘extremely bullish’(75/100) a day ago, while retail chatter rose to ‘extremely high.’

One retail user wondered why the stock was not moving upward.

AAR shares have gained 9.9% year-to-date (YTD).

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