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Why Is Spirit Aerosystems (SPR) Down 4.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for Spirit Aerosystems (SPR - Free Report) . Shares have lost about 4.6% 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 reported a second-quarter 2023 adjusted loss of $1.46 per share, wider than the Zacks Consensus Estimate of a loss of 79 cents. The figure also deteriorated from the year-ago quarter’s reported loss of $1.21 cents per share.
Barring one-time adjustments, Spirit AeroSystems recorded a GAAP loss of $1.96 per share compared with a loss of $1.17 in the prior-year period.
Highlights of the Release
Total revenues of $1,365 million surpassed the Zacks Consensus Estimate of $1,270 million by 7.4%. Moreover, the top line rose 8% on a year-over-year basis, driven by higher production deliveries of the Boeing 737 and 787 jets and increased Defense and Space revenues.
The company’s backlog at the end of the second quarter totaled $40.5 billion, up from the prior quarter’s level of $37 billion.
Segmental Performance
Commercial Segment: Revenues in the segment increased 5% year over year to $1,083 million. The upside can be attributed to increased production revenues from the Boeing 737 and 787 jet programs.
Operating loss widened to $72.9 million from $45.1 million in the year-ago period.
Defense & Space: The segment recorded revenues of $189.6 million, up 29.5% year over year, driven by increased activity on development programs and higher production from the Boeing P-8 program.
Operating income decreased 12.4% to $12 million from $13.7 million in the prior-year quarter.
Aftermarket: The top line improved 14.6% year over year to $92.1 million, driven by higher spare part sales as well as increased maintenance, repair and overhaul activity.
Operating profit increased 105.9% year over year to $24.3 million.
Operational Highlights
Total operating costs and expenses rose 9% year over year to $1,485.1 million due to higher cost of sales, selling, general and administrative expenses, and restructuring costs.
SPR’s operating loss totaled $120.4 million compared with $104.7 million in the prior-year period. This increase was mainly on account of higher changes in estimates as well as contra revenue recorded for a potential customer claim.
Financial Position
As of Jun 29, 2023, Spirit AeroSystems had $525.7 million in cash and cash equivalents compared with $658.6 million as of Dec 31, 2022.
The long-term debt as of Jun 29, 2023, totaled $3,814.9 million, which came in line with the figure recorded at the end of 2022.
Cash outflow from operating activities amounted to $229 million during the first six months of 2023 compared with $331.7 million a year ago.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -781.16% due to these changes.
VGM Scores
At this time, Spirit Aerosystems has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 these revisions indicates a downward shift. It's no surprise Spirit Aerosystems has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Spirit Aerosystems (SPR) Down 4.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Spirit Aerosystems (SPR - Free Report) . Shares have lost about 4.6% 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 Q2 Earnings Miss, Revenues Rise Y/Y.
Spirit AeroSystems reported a second-quarter 2023 adjusted loss of $1.46 per share, wider than the Zacks Consensus Estimate of a loss of 79 cents. The figure also deteriorated from the year-ago quarter’s reported loss of $1.21 cents per share.
Barring one-time adjustments, Spirit AeroSystems recorded a GAAP loss of $1.96 per share compared with a loss of $1.17 in the prior-year period.
Highlights of the Release
Total revenues of $1,365 million surpassed the Zacks Consensus Estimate of $1,270 million by 7.4%. Moreover, the top line rose 8% on a year-over-year basis, driven by higher production deliveries of the Boeing 737 and 787 jets and increased Defense and Space revenues.
The company’s backlog at the end of the second quarter totaled $40.5 billion, up from the prior quarter’s level of $37 billion.
Segmental Performance
Commercial Segment: Revenues in the segment increased 5% year over year to $1,083 million. The upside can be attributed to increased production revenues from the Boeing 737 and 787 jet programs.
Operating loss widened to $72.9 million from $45.1 million in the year-ago period.
Defense & Space: The segment recorded revenues of $189.6 million, up 29.5% year over year, driven by increased activity on development programs and higher production from the Boeing P-8 program.
Operating income decreased 12.4% to $12 million from $13.7 million in the prior-year quarter.
Aftermarket: The top line improved 14.6% year over year to $92.1 million, driven by higher spare part sales as well as increased maintenance, repair and overhaul activity.
Operating profit increased 105.9% year over year to $24.3 million.
Operational Highlights
Total operating costs and expenses rose 9% year over year to $1,485.1 million due to higher cost of sales, selling, general and administrative expenses, and restructuring costs.
SPR’s operating loss totaled $120.4 million compared with $104.7 million in the prior-year period. This increase was mainly on account of higher changes in estimates as well as contra revenue recorded for a potential customer claim.
Financial Position
As of Jun 29, 2023, Spirit AeroSystems had $525.7 million in cash and cash equivalents compared with $658.6 million as of Dec 31, 2022.
The long-term debt as of Jun 29, 2023, totaled $3,814.9 million, which came in line with the figure recorded at the end of 2022.
Cash outflow from operating activities amounted to $229 million during the first six months of 2023 compared with $331.7 million a year ago.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -781.16% due to these changes.
VGM Scores
At this time, Spirit Aerosystems has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 these revisions indicates a downward shift. It's no surprise Spirit Aerosystems has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.