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In a challenging economic climate, AAR Corp (NYSE: NYSE:AIR) stock has recorded a new 52-week low, dipping to $47.82. According to InvestingPro data, the stock's technical indicators suggest oversold territory, with the current price showing a significant 34% decline from its 52-week high of $76.34. The aviation support company, which has been navigating through a turbulent market, has seen a significant downturn over the past year, with a 1-year change showing a decline of -16.96%. This latest price level reflects investor concerns and industry-wide pressures that have weighed on the company's market performance. Despite the broader market's fluctuations, AAR Corp's recent low underscores the need for strategic adjustments to weather the headwinds facing the aerospace sector. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 2.82, while analysts project positive net income growth for the coming year. Discover 10+ additional exclusive insights and detailed analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, AAR Corporation reported its fiscal third-quarter 2025 results, revealing a 20% increase in revenue, although it fell short of the expected $698.97 million, coming in at $678 million. The company achieved an adjusted earnings per share (EPS) of $0.99, slightly exceeding the forecast of $0.98. Analysts from RBC Capital Markets maintained an Outperform rating with a $75 price target, emphasizing the company's strong margin performance, while Benchmark analysts reiterated a Buy rating with an $83 target, highlighting the positive impact of efficiency measures on adjusted EBITDA. Truist Securities adjusted its price target for AAR Corporation to $78, maintaining a Buy rating despite the revenue shortfall attributed to weakness in the Used Serviceable Material (USM) segment.
AAR Corporation's management expressed optimism about future demand, noting that the company has not yet observed any decline in service demand despite reductions in airline capacity. The company continues to expand its product distribution and recently announced significant deals, including agreements with Chromalloy and Unison, and the selection of its Trax software by Cathay Pacific. Additionally, AAR anticipates closing the sale of its $51 million Landing Gear Overhaul business in the fourth fiscal quarter of 2025, a strategic move expected to shape its growth trajectory.
The company is also experiencing increased availability of whole aircraft assets on the market, which is expected to boost its USM trading volume. Looking forward, AAR Corporation anticipates mid-single-digit sales growth for the fourth quarter of fiscal year 2025, with expected adjusted operating margins between 9.7% and 9.9%. Analysts from Truist Securities expect revenue growth to continue in the upcoming quarter, excluding the impact of the landing gear sale, with modest sequential growth in adjusted operating margins.
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