AAR Corp. AIR is scheduled to release fourth-quarter fiscal 2021 results on Jul 20, after market close. In the last reported quarter, the company delivered an earnings surprise of 19.35%.Moreover, AAR Corp. has a four-quarter earnings surprise of 129.07%, on average.Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.Factors at PlayAs a gradual improvement has been observed in commercial passenger travel activity over the past few months, AAR Corp.’s overall sales are expected to have made some recovery in the fiscal fourth quarter from the earlier downturns courtesy of the pandemic’s impact.AAR Corp. Price and EPS Surprise AAR Corp. price-eps-surprise | AAR Corp. QuoteMeanwhile, the company’s government businesses, which have been delivering strong performance over the past year amid the challenges posed by COVID-19, are expected to have performed favorably.Hence, the company’s quarterly top-line performance is likely to have been encouraging.Notably, the Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $421.4 million, which indicates a rise of 1.2% from the year-ago quarter’s reported figure.Stable earnings from the Department of State’s WASS contract, which has been contributing well for the past few quarters, must have added value to the company’s fiscal fourth-quarter bottom-line figure. Meanwhile, initiatives taken by the company to reduce its indirect cost and drive efficiency are expected to have boosted its quarterly gross profit. This in turn is also likely to have contributed favorably to AAR Corp’s earnings in the soon-to-be-reported quarter. Moreover, encouraging top-line performance is expected to have benefited the company’s quarterly earnings.The Zacks Consensus Estimate for fiscal fourth-quarter earnings per share is pegged at 44 cents, which indicates an improvement of 69.2% from the year-ago quarter’s reported figure.Earnings WhispersOur proven model does not conclusively predict an earnings beat for AAR Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: AAR Corp. carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks to ConsiderHere are some defense companies you may want to consider, as these have the right combination of elements to post an earnings beat in their upcoming releases:General Dynamics GD has an Earnings ESP of +1.98% and a Zacks Rank #3.Leidos Holdings LDOS has an Earnings ESP of +4.46% and a Zacks Rank #3.Spirit AeroSystems SPR has an Earnings ESP of +13.20% and a Zacks Rank #3. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Dynamics Corporation (GD): Free Stock Analysis Report AAR Corp. (AIR): Free Stock Analysis Report Spirit Aerosystems Holdings, Inc. (SPR): Free Stock Analysis Report Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research