Aviation and defense services provider AAR CORP (NYSE: AIR) will be reporting earnings tomorrow after market close. Here’s what to expect.

AAR beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $686.1 million, up 25.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates.

Is AAR a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting AAR’s revenue to grow 23% year on year to $697.7 million, improving from the 8.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.96 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AAR has missed Wall Street’s revenue estimates three times over the last two years.

With AAR being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for aerospace and defense stocks. However, the whole sector has been hit hard over the last month as stocks in AAR’s peer group are down 3.8% on average. AAR is up 9.9% during the same time and is heading into earnings with an average analyst price target of $81.40 (compared to the current share price of $69.70).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. We prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.