AIR - AAR -6% after FQ2 results revenue miss

AAR (AIR) slips 6% after-hours, as it reported FQ2 sales decline of 28% Y/Y to $403.6M, with commercial customers sales decrease of 48% Y/Y and government customers sales increase of 13% Y/Y.Aviation Services sales were $385M (-27.6% Y/Y); and Expeditionary Services sales were $18.6M (-35.6% Y/Y).Q2 gross margin increased to 17.2% from 15.3%, due primarily to the CARES Act payroll support.Operating margin expanded by 35 bps to 5.4%; and adj. operating margin expanded by 220 bps to 3.9%.Adj. EBITDA declined by 40.3% Y/Y to $27M; and margin declined by 137 bps to 6.7%.SG&A expenses decreased to $43.4M from $57.1M, reflecting the impact of reduce fixed and variable cost structure; and as a percentage of sales 10.8%, compared to 10.2% last year.Net cash provided from operating activities for the quarter was $26.6M, compared to $14.5M a year ago.Previously: AAR EPS beats by $0.14, misses on revenue (Dec. 17)

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AAR -6% after FQ2 results revenue miss