Stock Track | AAR Corp Soars 5.18% After Hours on Strong Q2 Earnings Beat and Robust Sales Growth

Stock Track01-08 05:38

AAR Corp (AIR) shares surged over 5% in the after-hours session on Tuesday, following the company's impressive fiscal second-quarter results that outpaced analyst expectations. The aviation services firm reported record quarterly sales and improved margins, driven by broad-based growth across its commercial and government customer base.

For the three months ended November 30, AAR posted adjusted earnings of $0.90 per share, surpassing the consensus estimate of $0.84 per share. Revenue soared 26% year-over-year to $686.1 million, exceeding analysts' projections of $654.2 million. The top-line growth was fueled by a 30% jump in sales to commercial customers, supported by strong demand in the parts supply segment and the acquisition of the company's product support business.

AAR's CEO John M. Holmes expressed optimism, stating, "We anticipate continued strong sales growth in the second half of fiscal year 2025. We also expect further margin expansion in the coming quarters, underpinned by robust demand and our ongoing cost control measures." The company's solid performance and positive outlook bolstered investor confidence, resulting in the sharp after-hours rally.

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