AAR Shares Move On $450 Million Contract With Earnings Report Due Today

AAR Corp. (NYSE:AIR) shares are up on Tuesday following the announcement of significant government contracts, boosting investor sentiment.

Contract Details And Scope

The company secured two major U.S. Air Force contracts valued at up to approximately $450 million, strengthening its revenue visibility and operational stability.

AAR Corp. won two pallet contracts, including a $160 million firm-fixed-price agreement to provide repair services for the 463L Legacy Cargo Pallet through March 2031, and a $290 million contract to manufacture and produce 463 legacy air cargo pallets through March 2032.

The 463L pallet is the U.S. Air Force's standard cargo platform, and AAR has served as its primary supplier since 1963.

"Government contracts are core to AAR’s diversified business model. For decades, AAR has proudly met the pallet needs of the U.S. government, and these additional awards extend our services into 2032, bringing support and stability wherever they are needed worldwide," said Tom Hoferer.

Earnings Outlook And Recent Developments

AAR is set to report third-quarter earnings after the closing bell today (March 24).

Analysts expect earnings of $1.16 per share, up from 99 cents a year earlier, on revenue of $812.58 million compared to $678.2 million last year.

AIR RSI 41.50; MACD -1.5210

Currently, AAR is trading 6.4% below its 20-day simple moving average (SMA) and 4.0% above its 100-day SMA, demonstrating a mixed short-term trend. Shares have increased 47.91% over the past 12 months and are currently positioned closer to their 52-week highs than lows.

The RSI is at 41.50, which is considered neutral territory, indicating that the stock is neither overbought nor oversold. Meanwhile, MACD shows a value of -1.5210, with the signal line at -0.4330, suggesting bearish pressure on the stock.

The combination of a neutral RSI and a bearish MACD suggests mixed momentum, suggesting traders should watch for potential shifts in market sentiment.

• Key Resistance: $110.00
• Key Support: $95.00

Analyst Consensus & Recent Actions

The stock carries a Buy Rating with an average price target of $106.13. Recent analyst moves include:

• Truist Securities: Buy (Raises Target to $128.00) (Mar. 6)
• Jefferies: Buy (Raises Target to $135.00) (Feb. 23)
• Goldman Sachs: Initiated with Neutral (Target $121.00) (Jan. 26)

AIR Momentum Rank 92.2

Below is the Benzinga Edge scorecard for AAR, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 60.79 — The stock is moderately valued compared to peers.
• Growth Rank: 34.07 — Indicates lower growth potential relative to the market.
• Quality Rank: 51.54 — Suggests a balanced quality profile.
• Momentum Rank: 92.2 — Indicates strong momentum, outperforming the broader market.

The Verdict: AAR’s Benzinga Edge signal reveals a growth-heavy profile with strong momentum, suggesting that the stock may continue to perform well in the near term.

ARWG Holds AIR at 2.66%

• Archer Growth ETF (NASDAQ:ARWG): 2.66% Weight

Significance: Because AIR carries meaningful weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

AIR Stock Price Activity: AAR shares were up 0.27% at $103.77 at last check on Tuesday, according to Benzinga Pro data.

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