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Why Is Spirit Aerosystems (SPR) Down 5.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Spirit Aerosystems (SPR - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Spirit Aerosystems due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Spirit AeroSystems Q4 Earnings Lag Estimates, Revenues Top
Spirit AeroSystemsincurred a fourth-quarter 2021 adjusted loss of 84 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 63 cents. However, the bottom line improved from the year-ago quarter’s loss of $1.31 per share.
Including one-time adjustments, the company reported a GAAP loss of $1.15 per share compared with a loss of $2.85 in the year-ago quarter.
The year-over-year upside was primarily driven by higher production of Boeing 737 jets and income recognized from the Aviation Manufacturing Jobs Protection Program awarded during the third quarter of 2021.
The company reported an adjusted loss per share of $3.46 for full-year 2021, which improved from a loss of $5.72 reported in 2020. The full-year loss was wider than the Zacks Consensus Estimate of loss of $3.25 per share.
Highlights of the Release
Total revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 2.8%. Moreover, the top line improved 22% on a year-over-year basis from $877 million. The upside was driven by higher production deliveries of Boeing 737 jets and increased revenues from the recently acquired A220 wing and Bombardier programs.
During full-year 2021, Spirit AeroSystems generated sales worth $3.95 billion, up 16% from the year-ago figure. Full-year sales surpassed the Zacks Consensus Estimate of $3.92 billion by 0.8%.
Backlog
The backlog at the end of the fourth quarter of 2021 was $35 billion compared with $33 billion at the end of the third quarter of 2021.
Segment Performance
Commercial Segment:Revenues in the segment increased 22% year over year to $844.3 million in the fourth quarter of 2021, primarily due to higher production volumes from the Boeing 737 and the recently acquired A220 and Bombardier programs.
Operating loss for the fourth quarter of 2021 narrowed to $20.2 million from an operating loss of $59.7 million in the year-ago quarter.
Defense & Space:The segment recorded revenues of $152 million in the reported quarter, up 11% year over year. The upside can be attributed to increased production volumes from the Boeing P-8 program.
Operating income for the fourth quarter of 2021 decreased 36.2% to $12 million from $18.8 million in the year-ago quarter.
Aftermarket:Revenues in the segment improved a solid 48.5% year over year to $73.8 million in the fourth quarter, primarily due to the inclusion of a full quarter of maintenance, repair and overhaul activity from Belfast, Northern Ireland and Dallas, TX sites, which were acquired late in the fourth quarter of 2020. Also, higher spare part sales contributed to this unit’s top line.
Operating profit for the fourth quarter of 2021 increased solid 100% to $16.8 million.
Operational Highlights
Total operating costs and expenses increased 17.5% year over year to $1,149.1 million on account of the higher cost of sales, SG&A expenses as well as research and development expenses.
The company incurred an operating loss of $79 million in the fourth quarter of 2021 compared with $101.4 million in the prior-year quarter.
Financial Position
At the end of 2021, SPR had $1,478.6 million of cash and cash equivalents compared with $1,873.3 million as of Dec 31, 2020.
At the end of 2021, long-term debt totaled $3,742.7 million compared with $3,532.9 million at the end of 2020.
Cash outflow from operating activities was $63.2 million at the end of 2021 compared with $744.9 million at the end of 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -6516.67% due to these changes.
VGM Scores
Currently, Spirit Aerosystems has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Spirit Aerosystems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Spirit Aerosystems (SPR) Down 5.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Spirit Aerosystems (SPR - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Spirit Aerosystems due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Spirit AeroSystems Q4 Earnings Lag Estimates, Revenues Top
Spirit AeroSystemsincurred a fourth-quarter 2021 adjusted loss of 84 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 63 cents. However, the bottom line improved from the year-ago quarter’s loss of $1.31 per share.
Including one-time adjustments, the company reported a GAAP loss of $1.15 per share compared with a loss of $2.85 in the year-ago quarter.
The year-over-year upside was primarily driven by higher production of Boeing 737 jets and income recognized from the Aviation Manufacturing Jobs Protection Program awarded during the third quarter of 2021.
The company reported an adjusted loss per share of $3.46 for full-year 2021, which improved from a loss of $5.72 reported in 2020. The full-year loss was wider than the Zacks Consensus Estimate of loss of $3.25 per share.
Highlights of the Release
Total revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 2.8%. Moreover, the top line improved 22% on a year-over-year basis from $877 million. The upside was driven by higher production deliveries of Boeing 737 jets and increased revenues from the recently acquired A220 wing and Bombardier programs.
During full-year 2021, Spirit AeroSystems generated sales worth $3.95 billion, up 16% from the year-ago figure. Full-year sales surpassed the Zacks Consensus Estimate of $3.92 billion by 0.8%.
Backlog
The backlog at the end of the fourth quarter of 2021 was $35 billion compared with $33 billion at the end of the third quarter of 2021.
Segment Performance
Commercial Segment:Revenues in the segment increased 22% year over year to $844.3 million in the fourth quarter of 2021, primarily due to higher production volumes from the Boeing 737 and the recently acquired A220 and Bombardier programs.
Operating loss for the fourth quarter of 2021 narrowed to $20.2 million from an operating loss of $59.7 million in the year-ago quarter.
Defense & Space:The segment recorded revenues of $152 million in the reported quarter, up 11% year over year. The upside can be attributed to increased production volumes from the Boeing P-8 program.
Operating income for the fourth quarter of 2021 decreased 36.2% to $12 million from $18.8 million in the year-ago quarter.
Aftermarket:Revenues in the segment improved a solid 48.5% year over year to $73.8 million in the fourth quarter, primarily due to the inclusion of a full quarter of maintenance, repair and overhaul activity from Belfast, Northern Ireland and Dallas, TX sites, which were acquired late in the fourth quarter of 2020. Also, higher spare part sales contributed to this unit’s top line.
Operating profit for the fourth quarter of 2021 increased solid 100% to $16.8 million.
Operational Highlights
Total operating costs and expenses increased 17.5% year over year to $1,149.1 million on account of the higher cost of sales, SG&A expenses as well as research and development expenses.
The company incurred an operating loss of $79 million in the fourth quarter of 2021 compared with $101.4 million in the prior-year quarter.
Financial Position
At the end of 2021, SPR had $1,478.6 million of cash and cash equivalents compared with $1,873.3 million as of Dec 31, 2020.
At the end of 2021, long-term debt totaled $3,742.7 million compared with $3,532.9 million at the end of 2020.
Cash outflow from operating activities was $63.2 million at the end of 2021 compared with $744.9 million at the end of 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -6516.67% due to these changes.
VGM Scores
Currently, Spirit Aerosystems has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Spirit Aerosystems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.