AAR expects sales growth of 21%-23%, excluding legacy programs, but those programs may reduce results by $15 million compared with the prior year. The growth and lower profit margin estimate point in different directions, so this story does not clearly change AAR’s outlook.
Growth in parts, repair work, and recurring services supports AAR’s sales outlook. But legacy programs are expected to cut into profit margins. Neither side clearly outweighs the other, so the story gives no firm reason to read AAR more favorably or less favorably.
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