AAR (AIR) Stock Tumbles on Q4 Earnings Miss, Outlook

AAR (AIR) stock is falling on Wednesday afternoon after the company reported disappointing fourth quarter earnings and provided a downbeat forecast for fiscal 2017.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of AAR (AIR) - Get Report are diving 8.71% to $22.86 on heavy trading volume Wednesday afternoon after the Wood Dale, IL-based company reported weaker-than-expected earnings for the 2016 fiscal fourth quarter.

After yesterday's closing bell, the aviation services company reported earnings of 32 cents per diluted share, which fell short of analysts' expectations of 47 cents per share.

Revenue for the period was $458.2 million, higher than Wall Street's projection of $452.4 million.

For fiscal 2017, AAR sees earnings per diluted share between $1.30 and $1.40 on revenue of $1.7 billion to $1.8 billion, below analysts' estimates.

Analysts are modeling earnings of $1.76 per share on revenue of $1.76 billion for the full year.

About 1.06 million of the company's shares changed hands so far this afternoon compared to its average volume of 169,892 shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations.

But the team also finds weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: AIR

Loading ...