What's Next: AAR's Earnings Preview

AAR AIR will release its quarterly earnings report on Wednesday, 2025-07-16. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate AAR to report an earnings per share (EPS) of $1.00.

Investors in AAR are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.03, leading to a 16.4% drop in the share price the following trading session.

Here's a look at AAR's past performance and the resulting price change:

Stock Performance

Shares of AAR were trading at $74.72 as of July 14. Over the last 52-week period, shares are up 0.29%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on AAR

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on AAR.

Analysts have given AAR a total of 1 ratings, with the consensus rating being Buy. The average one-year price target is $81.0, indicating a potential 8.4% upside.

Comparing Ratings Among Industry Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Mercury Sys, V2X and Cadre Hldgs, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Mercury Sys, with an average 1-year price target of $50.8, suggesting a potential 32.01% downside.
• Analysts currently favor an Buy trajectory for V2X, with an average 1-year price target of $55.0, suggesting a potential 26.39% downside.
• Analysts currently favor an Neutral trajectory for Cadre Hldgs, with an average 1-year price target of $38.0, suggesting a potential 49.14% downside.

Analysis Summary for Peers

The peer analysis summary outlines pivotal metrics for Mercury Sys, V2X and Cadre Hldgs, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

AAR ranks at the top for Revenue Growth with 19.55%, outperforming its peers. It is at the bottom for Gross Profit at $131.70M. AAR is at the bottom for Return on Equity with -0.75%.

Delving into AAR's Background

AAR Corp is engaged in providing products and services to aviation, government, and defense market. It operates in three segments namely Parts Supply, Repair & Engineering, and Integrated Solutions. The parts supply segment majorly consists of sales and leasing of USM and aftermarket distribution of new, OEM-supplied replacement parts. Repair & Engineering segment provides airframe maintenance, component repair, and landing gear overhaul services. Integrated Solutions segment majorly consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the U.S. Department of Defense and foreign governments, flight hour component inventory and repair programs for commercial airlines.

AAR: A Financial Overview

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, AAR showcased positive performance, achieving a revenue growth rate of 19.55% as of 28 February, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: AAR's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -1.31%, the company may face hurdles in effective cost management.

Return on Equity (ROE): AAR's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -0.75%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): AAR's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.31%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: AAR's debt-to-equity ratio stands notably higher than the industry average, reaching 0.92. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for AAR visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.