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Why Is Spirit Aerosystems (SPR) Down 0.4% 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 0.4% 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 catalysts.
Spirit AeroSystems Q2 Loss Widens, Revenues Rise Y/Y
Spirit AeroSystems reported a second-quarter 2024 adjusted loss of $2.73 per share, which came in much wider than the Zacks Consensus Estimate of a loss of 98 cents per share. The loss also widened from the year-ago quarter’s reported loss of $1.46 per share.
Barring one-time adjustments, Spirit AeroSystems recorded a GAAP loss of $3.56 per share compared with a loss of $1.96 in the prior-year period.
The year-over-year deterioration in the bottom line can be attributed to a higher operating loss incurred in the second quarter of 2024 compared to the second quarter of 2023.
Highlights of the Release
Total revenues of $1.49 billion surpassed the Zacks Consensus Estimate of $1.47 billion by 1.7%. Moreover, the top line also rose 9.3% on a year-over-year basis, driven by higher production activities of the company’s commercial programs. Higher Defense and Space revenues also contributed to SPR’s total revenue growth.
Spirit AeroSystems’ backlog at the end of the second quarter totaled $48 billion, down from the prior quarter’s figure of $49 billion.
Segmental Performance
Commercial Segment: Revenues in the segment increased 7.7% year over year to $1.17 billion. The upside was driven by higher production across most of its programs.
The segment’s operating loss was $270.5 million compared with the operating loss of $72.9 million in the year-ago period. The deterioration can be attributed to higher changes in estimates.
Defense & Space: The segment recorded revenues of $224.4 million, up 18.4% year over year, driven by increased activity in the Sikorsky CH-53K program.
The unit’s operating income increased 55.8% to $18.7 million from $12 million in the prior-year quarter, driven by higher activities in the Sikorsky CH-53K program.
Aftermarket: This segment’s top line improved 9.8% year over year to $101.1 million, driven by higher spare part sales.
The segment’s operating profit decreased 28% year over year to $17.5 million due to the sales mix.
Operational Highlights
Total operating costs and expenses rose 22.8% year over year to $1.82 billion due to the higher cost of sales, selling, general and administrative expenses, and higher research and development expenses.
SPR’s operating loss in the second quarter of 2024 totaled $331.3 million compared with the operating loss of $120.4 million in the prior-year quarter. This deterioration was mainly due to unfavorable changes in estimates.
Financial Position
As of Jun 27, 2024, Spirit AeroSystems had $206 million in cash and cash equivalents compared with $823.5 million as of Dec 31, 2023.
The long-term debt as of Jun 27, 2024 totaled $3.98 billion compared with $4.02 billion as of Dec 31, 2023.
Cash outflow from operating activities amounted to $981.1 million during the first six months of 2024 compared with cash outflow of $229 million recorded a year ago.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months.
The consensus estimate has shifted -20.68% due to these changes.
VGM Scores
At this time, Spirit Aerosystems has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Spirit Aerosystems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Spirit Aerosystems belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, Teledyne Technologies (TDY - Free Report) , has gained 3.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Teledyne reported revenues of $1.37 billion in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $4.58 for the same period compares with $4.67 a year ago.
For the current quarter, Teledyne is expected to post earnings of $4.97 per share, indicating a change of -1.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Teledyne. Also, the stock has a VGM Score of D.
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Why Is Spirit Aerosystems (SPR) Down 0.4% 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 0.4% 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 catalysts.
Spirit AeroSystems Q2 Loss Widens, Revenues Rise Y/Y
Spirit AeroSystems reported a second-quarter 2024 adjusted loss of $2.73 per share, which came in much wider than the Zacks Consensus Estimate of a loss of 98 cents per share. The loss also widened from the year-ago quarter’s reported loss of $1.46 per share.
Barring one-time adjustments, Spirit AeroSystems recorded a GAAP loss of $3.56 per share compared with a loss of $1.96 in the prior-year period.
The year-over-year deterioration in the bottom line can be attributed to a higher operating loss incurred in the second quarter of 2024 compared to the second quarter of 2023.
Highlights of the Release
Total revenues of $1.49 billion surpassed the Zacks Consensus Estimate of $1.47 billion by 1.7%. Moreover, the top line also rose 9.3% on a year-over-year basis, driven by higher production activities of the company’s commercial programs. Higher Defense and Space revenues also contributed to SPR’s total revenue growth.
Spirit AeroSystems’ backlog at the end of the second quarter totaled $48 billion, down from the prior quarter’s figure of $49 billion.
Segmental Performance
Commercial Segment: Revenues in the segment increased 7.7% year over year to $1.17 billion. The upside was driven by higher production across most of its programs.
The segment’s operating loss was $270.5 million compared with the operating loss of $72.9 million in the year-ago period. The deterioration can be attributed to higher changes in estimates.
Defense & Space: The segment recorded revenues of $224.4 million, up 18.4% year over year, driven by increased activity in the Sikorsky CH-53K program.
The unit’s operating income increased 55.8% to $18.7 million from $12 million in the prior-year quarter, driven by higher activities in the Sikorsky CH-53K program.
Aftermarket: This segment’s top line improved 9.8% year over year to $101.1 million, driven by higher spare part sales.
The segment’s operating profit decreased 28% year over year to $17.5 million due to the sales mix.
Operational Highlights
Total operating costs and expenses rose 22.8% year over year to $1.82 billion due to the higher cost of sales, selling, general and administrative expenses, and higher research and development expenses.
SPR’s operating loss in the second quarter of 2024 totaled $331.3 million compared with the operating loss of $120.4 million in the prior-year quarter. This deterioration was mainly due to unfavorable changes in estimates.
Financial Position
As of Jun 27, 2024, Spirit AeroSystems had $206 million in cash and cash equivalents compared with $823.5 million as of Dec 31, 2023.
The long-term debt as of Jun 27, 2024 totaled $3.98 billion compared with $4.02 billion as of Dec 31, 2023.
Cash outflow from operating activities amounted to $981.1 million during the first six months of 2024 compared with cash outflow of $229 million recorded a year ago.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months.
The consensus estimate has shifted -20.68% due to these changes.
VGM Scores
At this time, Spirit Aerosystems has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Spirit Aerosystems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Spirit Aerosystems belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, Teledyne Technologies (TDY - Free Report) , has gained 3.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Teledyne reported revenues of $1.37 billion in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $4.58 for the same period compares with $4.67 a year ago.
For the current quarter, Teledyne is expected to post earnings of $4.97 per share, indicating a change of -1.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Teledyne. Also, the stock has a VGM Score of D.