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AAR Corporation down 6% post Q2 results; lowers FY revenue guidance

Published 12/19/2018, 10:31 AM
© Reuters.  AAR Corporation down 6% post Q2 results; lowers FY revenue guidance
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  • AAR (AIR -6%) reported Q2 sales growth of 17.3% Y/Y to $493.3M (NYSE:MMM), due to continued growth in company’s trading, distribution and programs activities.
  • Sales by segments: Aviation Services $462.9M (+18.2% Y/Y) and Expeditionary Services $30.4M (+5.2% Y/Y).
  • Commercial customer sales contribute 68% to total sales, and government and defense customer contribution was 32%.
  • Q2 Gross margin declined by 94 bps to 18.9% and operating margin declined by 178 bps to 3.4%.
  • SG&A margin declined by 160 bps to 10%.
  • Adj. EBITDA increased 15.3% Y/Y to $40.8M and margin declined by 15 bps to 8.3%.
  • FY19 Guidance: Revenue $2-2.1B (prior $2.1-2.2B); Adj. EPS $2.5-2.8 and Adj. EBITDA $180-190M.
  • Previously: AAR beats by $0.02, misses on revenue (Dec. 18)
  • Transcript
  • Now read: Steelcase reports Q3 results; shares +2%


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