AIR - AAR up 7% post Q3 results EPS beat

AAR ([[AIR]] +7.3%) reported Q3 revenue decline of ~26% Y/Y to $410.3M; and income from continuing operations of $31.1M vs. $2.6M a year ago.Aviation Services sales of $389.7M (-26.5% Y/Y); and gross margin of 21.2% up by 888 bps.Expeditionary Services sales of $20.6M (-9.6% Y/Y); and gross margin of 17% up by 1,655 bps.Gross profit margins increased to 21% vs. 11.8% in the prior year quarter, due to the CARES Act payroll support.Q3 operating margin improved by 872 bps to 9.7%.Q3 Adj. EBITDA of $27.4M (-42.2% Y/Y); and margin declined by 190 bps to 6.7%.Net cash provided from operating activities for the quarter were $17.1M, compared to $9M a year ago.Company remains in a strong balance sheet position with 1.1 times net debt to adjusted EBITDA; unrestricted cash of $99.2M and unused capacity under revolver of over $400M."Given the unprecedented developments taking place the share price reaction was no surprise, yet I believed that AIR had

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AAR up 7% post Q3 results EPS beat