AIR - Why Shares in Aviation Services Company AAR Corp Slumped Today
Shares in aviation services company AAR Corp (NYSE: AIR) declined more than 5% as of late trading today. The decline comes as a consequence of the company's fiscal fourth-quarter and full-year earnings announced earlier in the day.
It's not that there was anything wrong with the results per se. Sales were up 9% in the quarter with a whopping 28% year-over-year increase in sales to commercial customers. Sales to government customers declined by 13% in the quarter on a year-over-year basis. Still, the market has long known that its military business would suffer due to a winding down of U.S. military operations in Afghanistan.
Instead, what spooked the market was management's commentary on 2023. As CEO John Holmes noted on the earnings call, "the trajectory of the commercial aviation market recovery remains difficult to predict, exacerbated by increasing macroeconomic uncertainty." He declined to give formal guidance.
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Why Shares in Aviation Services Company AAR Corp Slumped Today