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AAR Corp. - Uncertain Industry Outlook, Upcoming Earnings

www.istockanalyst.com | Jun 23, 2008

While a rising tide lifts all boats, the opposite also holds true.Such has been the case with PeakStocks.com portfolio recommendation AAR Corp. (NYSE: AIR), which provides products and services to the aviation, aerospace, and defense industries.Lately the words “aviation”, “aerospace” and “defense”

http://www.istockanalyst.com/article/viewarticle+articleid_2304410.html

AAR Corp. third-quarter profit rises to 47 cents a share (at MarketWatch)

www.marketwatch.com | Mar 18, 2008

) said late Tuesday its third-quarter net income rose to $20.1 million, or 47 cents a share, from $15.3 million, or 36 cents a share, in the year-earlier period. Revenue climbed to $376.6 million from $271 million, the Wood Dale, Ill.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7b805C2E8C-CF23-4037-A6C8-427547A85719%7d&siteid=yhoo&dist=yhoo

Will Ask.com/Google Merger Inspire Yahoo!/Microsoft? (at Seeking Alpha)

seekingalpha.com | Mar 4, 2008

IAC’s (IACI) Ask.com already uses Google’s (GOOG) text ads, but hitherto, it’s still used its own search algorithm, which it acquired when it bought Teoma. Teoma and Wisenut were once considered to be potential Google killers, Ask Jeeves bought Teoma; Looksmart bought WiseNut. Anyway, Ask.

http://seekingalpha.com/article/66890-will-ask-com-google-merger-inspire-yahoo-microsoft?source=yahoo

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AAR Corporation: Current Valuation Assumes 17% Growth - Seeking Alpha

transport.seekingalpha.com

Robert Blumenthal submits: I recently took a look at the 4th quarter and fiscal year 2007 results for AAR Corporation (AIR). As is usually the case, the company did slightly better than analysts' expectations.

http://transport.seekingalpha.com/article/42471?source=feed

AAR Corp., Corporation

SAN DIEGO, Calif. —— ICON Group International Ltd. today released studies on labor productivity and financial benchmarks for AAR Corp. (NYSE: AIR).

http://www.icongrouponline.com/pr/AAR_Corp_US/PR.html

AAR Corporation Extended Employer Snapshot: Detailed Employment Information

Welcome to the Gold Snapshot for AAR Corporation, available only for Vault Gold Members. Learn about Vault Gold Membership benefits or become a Gold member.

http://www.electronicwatercooler.com/companies/reports/coreport_main.jsp?product_id=44686

 

Zacks Bull and Bear of the Day Highlights: Comstock Resources, Molson Coors, AAR Corp., Acusphere

Zacks Equity Research highlights Comstock Resources (NYSE: CRK) as the Bull of the Day and Molson Coors Brewing Co. (NYSE: TAP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on AAR Corporation (NYSE: AIR), Acusphere, Inc. (Nasdaq: ACUS) and Taubman Centers (NYSE: TCO).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day: Comstock Resources (NYSE: CRK)

With first-quarter 2008 volumes up 25% year over year, we expect full-year growth to be approximately 20%. Additionally, the Bois d'Arc sale to Stone Energy is expected to streamline Comstock's operations and position it to function as a pure play onshore natural gas producer. The Haynesville Shale play offers significant long-term reserve-add potential going forward.

Comstock's drilling success in the Cotton Valley formation is another catalyst for future production growth. We are increasing our 2008 ($4.25 vs. $3.40) and 2009 ($3.95 vs. $3.52) EPS estimates.

Bear of the Day: Molson Coors Brewing Co. (NYSE: TAP)

Higher input costs are compressing the company's overall gross margin and smoking bans are negatively impacting the U.K. operations. Of particular concern is the cost rationalization moves by the major brewers that are expected to result in the loss of the positive pricing trends enjoyed by the industry for the last two years. Therefore, a Sell rating is initiated.

Latest Posts on the Zacks Analyst Blog:

AAR Corporation (NYSE: AIR)

We downgrade our rating on AAR Corp. that provides goods and services to both the domestic commercial airlines and the military services from Buy to Hold. This is in consideration of the dismal outlook for the domestic airline industry & the political uncertainties regarding defense expenditures.

On the commercial side, demand for AIR's offerings increases with the expansion and aging of fleet. With these growing requirements, airlines outsource more maintenance, repair and overhaul work.

Acusphere, Inc. (Nasdaq: ACUS)

Although Acusphere's Imagify was not specifically discussed at the meeting, we find it encouraging that the guidelines put forth by the FDA on what is necessary to gain approval for future contrast agents, including a large, randomized clinical program effectively powered to detect significant safety concerns, all seem to have been put in place and accomplished with the RAMP-1 and RAMP-2 program.

We note that between RAMP-1 (n=321) and RAMP-2 (n=377), along with over 300 patients in earlier-stage testing, Imagify has been studied in over 1000 patients. During the phase III (randomized) RAMP program, Imagify was well-tolerated with the majority of adverse effects (AEs) reported being mild in intensity, transient, and resolved without residual effects. Therefore, given the FDA's paramount focus on patient safety following what occurred with Definity and Optison last year, we think Imagify should have smooth sailing in this regard.

Taubman Centers (NYSE: TCO)

Taubman Centers' malls continue to perform relatively well. Retail spending has held up at the company's high end malls and, operationally, TCO will outperform peers in 2008. TCO reported year-over-year increases in sales, rent per square foot, and occupancy in the first-quarter.

Additionally, the company has some attractive domestic and international development projects in the pipeline that will incrementally add to earnings over the next several years. However, the US economy is faltering and consumer spending patterns have been dismal in 2008. We are concerned about retail stocks in an inflationary and weakening economic environment. Thus, we maintain our Hold rating on the shares.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com
Mark Vickery
312-265-9380
Visit: www.zacks.com

Read more...

Tags: airline   clinical   commercial   consumer   defense   earnings   economy   email   e-mail   energy   eps   investment   investment opinion   market   nasdaq   natural gas   note   nyse   prices   profit   property   research   retail   sailing   sales   securities   security   smoking  

Companies: AAR Corp. (AIR), Acusphere Inc (ACUS), Comstock Resources, Inc. (CRK), Molson Coors Brewing Co (TAP), Molson Coors Brewing Co (TAP/Aw), Taubman Centers, Inc. (TCO)

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Zacks Analyst Blog Highlights: AAR Corporation, AAON, STMicroelectronics, IBM and Mitsubishi UFJ

Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AAR Corporation (NYSE: AIR), AAON (Nasdaq: AAON), STMicroelectronics N.V. (NYSE: STM), International Business Machines (NYSE: IBM) and Mitsubishi UFJ Financial Group, Inc. (NYSE: MTU).

See the latest posts to the Analyst Blog:

http://www.zacks.com/blog/post_info.html?g=6

Here are highlights from Tuesday's Analyst Blog:

AAR Corp. Expected to Rise

AAR Corporation (NYSE: AIR) provides goods & services to both the commercial airlines and the military services. On the commercial side, demand for AIR's offerings increases as the fleet of aircraft expands as well as ages. Requirements also grow as the airlines outsource more maintenance, repair and overhaul work. Additionally, for the defense sector, AIR designs and manufactures much-needed mobility products, aircraft internal cargo loading/unloading systems and composite structures.

During the third quarter, AIR's aircraft portfolio declined by two to 37, with 29 aircraft held in joint ventures and eight wholly-owned by AAON (Nasdaq: AAON). Sales to commercial customers increased by 30%, and sales to defense customers grew by 57%, year-over-year. Defense sales represented 39% of consolidated sales, up from 34% a year earlier. Organic sales growth for the quarter was 25% compared to an overall sales growth of 39%; almost all the sales increase from acquisitions occurred in the structure and systems segment.

We maintain our Buy recommendation for AIR and have adjusted our six-month target price slightly upward from $36 to reflect extant P/E ratios in the group of similar aerospace/defense stocks that we have followed while evaluating this stock. The average P/E for the aerospace/defense group is 16.8. Given AIR's May fiscal year, in six months, it will certainly be trading based on projected fiscal 2009 earnings (and perhaps beyond). Our projection for AIR for fiscal 2009 is $2.30 per share, fully-diluted; using the average P/E of 16.8 would engender a price of just over $38.64, which would indicate that AIR is a Buy at current levels.

STMicro with Short-Term Questions

STMicroelectronics N.V. (NYSE: STM) continues to upgrade products and forge strategic alliances in order to fuel long-term growth. The company reported an in-line 2007 fourth quarter in terms of revenues, driven by stellar performances from its ASP and IMS groups.

However, we still expect that the strengthening euro will ultimately lead to margin weakness, even as the company continues to cut costs. The restructuring of its manufacturing facilities -- through the opening of its Chinese facility as well as the initiation of a partnership with International Business Machines (NYSE: IBM) -- may enable the company to save on R&D spending, which could help alleviate some cost pressures.

Additionally, the sale of its flash memory unit, which is now delayed until the end of the first quarter of 2008, might also help improve margins. Also, the availability of a common platform for integrated digital TV (iDTV) sets worldwide will open up a new market for STM as it integrates digital and analog broadcasting into a single chip. The decision by the company to make a new acquisition (Genesis Microchip) at this juncture has us concerned regarding its impact on the current ratio in the present quarter before funds from divestment are realized.

Bullish on Mitsubishi UFJ Financial

We are continuing our Buy on Mitsubishi UFJ Financial Group, Inc. or MUFG (NYSE: MTU), as well as our $12.50 target price. MUFG is expected to report fiscal full-year (March 31) results in late May. We are maintaining our fiscal year EPADS estimates at $0.50 for 2008 and $0.62 for 2009. For 2008, this is broadly in-line with the company's reduced earnings forecast for the year of Yen 600 billion (down 25% from Yen 800 billion before).

MUFG reported fiscal nine months (December 31) earnings of Yen 315 billion, down 54% year-over-year, largely reflecting a Yen 341 billion increase in credit costs. This was due to Yen 55 billion in impairment losses on sub-prime and SIV investments, as well as the absence of a Yen 140 billion reversal of the credit loss allowance as occurred in the prior-year period. MUFG completed a Yen 150 billion share repurchase plan and raised its annual dividend by 27%.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com
Terry Ruffolo
Media Relations
312-265-9213
Visit: www.zacks.com

Read more...

Tags: acquisition   aerospace   aircraft   broadcasting   cargo   commercial   defense   earnings   email   e-mail   equity   euro   investment   investment opinion   manufacturer   manufacturing   market   nasdaq   nyse   partnership   prices   products   profit   property   research   sales   securities   security   tv   yen  

Companies: AAON, Inc. (AAON), AAR Corp. (AIR), International Business Machines Corp. (IBM), Managed Municipals Portfolio II, Inc. (MTU), STMicroelectronics N.V. (STM)

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AAR Corp. Expected to Rise - Zibb.com

AAR Corporation (AAR) provides goods amp; services to both the commercial airlines and the military services. On the commercial side, demand for AIRs offerings increases as the fleet of aircraft expands as well as ages. Requirements also grow as the airlines outsource more maintenance, repair and overhaul work. Additionally, for the defense sector, AIR designs and manufactures much-needed mobility products, aircraft internal cargo loading/unloading systems and composite structures. During the third quarter, AIR's aircraft portfolio declined by two to 37, with 29 aircraft held in joint ventures and eight wholly-owned by AAON (AAON). Sales to commercial customers increased by 30%, and sales to defense customers grew by 57%, year-over-year. Defense sales represented 39% of consolidated sales, up from 34% a year earlier. Organic sales growth for the quarter was 25% compared to an overall sales growth of 39%; almost all the sales increase from acquisitions occurred in the structure and systems segment. We maintain our Buy recommendation for AIR and have adjusted our six-month target price slightly upward from $36 to reflect extant P/E ratios in the group of similar aerospace/defense stocks that we have followed while evaluating this stock. The average P/E for the aerospace/defense group is 16.8. Given AIRs May fiscal year, in six months, it will certainly be trading based on projected fiscal 2009 earnings (and perhaps beyond). Our projection for AIR for fiscal 2009 is $2.30 per share, fully-diluted; using the average P/E of 16.8 would engender a price of just over $38.64, which would indicate that AIR is a Buy at current levels. Read the full analyst report on AAR. Read the full analyst report on AAON.

Get real-time market insights and profitable stock recommendations from the team of analysts at Zacks Equity Research. See all today?s Analyst Blog entries.

Tags: acquisition   aerospace   aircraft   cargo   commercial   defense   earnings   manufacturer   market   products   research   sales  

Companies: AAR Corp. (AIR)

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