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UPDATE: D.A. Davidson Reiterates Rating, Lowers Price Target On AAR Corp. After FQ1 Earnings Disappoint

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In a report published Wednesday, D.A. Davidson analyst JB Groh reiterated a Buy rating on AAR Corp. (NYSE: AIR), but lowered the price target from $36.00 to $32.00.

In the report, D.A. Davidson noted, “AAR reported Q1 2015 EPS of $0.36, below our estimate of $0.40 and the $0.38 Street mean. Overall sales declined 8.8% to $469 million; below our estimate of $500 million and the $488 million Street mean. Consolidated gross margin for the quarter was 16.0%; down 50bp year-over-year, 100bp sequentially and 40bp below our estimate. Free cash flow was $6.0 million or $0.15 per share; it was negatively impacted by inventory purchases related to a supply chain contract. Commercial sales were up 2.4% (~65% of revenue) and defense sales fell 24% from Q1:14 (~35% of revenue).”

AAR Corp. closed on Tuesday at $28.00.

Latest Ratings for AIR

DateFirmActionFromTo
Jul 2019Initiates Coverage OnBuy
Sep 2018MaintainsOutperformOutperform
Sep 2018MaintainsBuyBuy

View More Analyst Ratings for AIR
View the Latest Analyst Ratings

Posted-In: D.A. Davidson JB GrohAnalyst Color Price Target Analyst Ratings

 

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