AAR Corporation (AIR) posted encouraging results for the third quarter 2011 with earnings per share of $0.45; up 61% year over year and surpassed the Zacks Consensus Estimate of $0.42. Improvements in all business segments, except for Structures and Systems, roughly doubled the revenue in the quarter.
Moreover, the company derives enormous benefits from its Aviation Worldwide Services (AWS) acquisition. This strategic step will not only be accretive to earnings and margins but also contribute largely to the company’s fleet expansion.
Recovery in global economy is favorably impacting the airline industry as passenger demand is on the rise, a positive indication to the stock. Thus, we maintain an Outperform recommendation on the stock.
AAR CORP (AIR): Free Stock Analysis Report
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