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Spirit AeroSystems (SPR) Q2 Earnings Miss, Revenues Down Y/Y
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Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported second-quarter 2020 adjusted loss of $2.28 per share, wider than the Zacks Consensus Estimates of a loss of $1.19. In the previous year’s second quarter, the company reported adjusted earnings of $1.71 per share.
Barring one-time adjustments, the company reported a GAAP loss of $2.46 per share against the earnings of $1.61 in the year-ago quarter.
Highlights of the Release
Total revenues of $644.6 million missed the Zacks Consensus Estimate of $806 million by 20%. Moreover, the top line plunged a massive 68% from $2,016 million in the year-ago period. The decline in revenues was primarily due to the significantly lower 737 MAX production, resulting from the grounding of the program, and the impacts of COVID-19.
Backlog at the end of second-quarter 2020 was $41 billion, lower than $42 billion in the prior quarter.
Segment Performance
Fuselage Systems: Revenues in the segment declined 70.2% to $327.1 million from $1,096.8 million registered in second-quarter 2019, primarily due to lower production volumes on the Boeing 737 and 787, and Airbus A350 programs.
Propulsion Systems: The segment recorded revenues of $169.6 million in the reported quarter, down 67.3% from $518.9 million a year ago. The downside can be attributed to lower production volumes on the Boeing 737 program.
Wing Systems: Revenues in the segment deteriorated 69.3% to $122.5 million from $398.5 million in the prior-year quarter. The downside was primarily due to lower production volumes on the Boeing 737 and Airbus A320 and A350 programs.
Operational Highlights
Total operating costs and expenses declined 43.5% year over year to $1,011.6 million on account of lower cost of sales; decreased selling, general and administrative expenses; and reduced research and development expenses.
The company incurred an operating loss of $367 million in the second quarter of 2020 against operating earnings of $226 million in the prior-year quarter.
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
As of Jul 2, 2020, Spirit AeroSystems had $1,947.1 million in cash and cash equivalents compared with $2,350.5 million as of Dec 31, 2019.
At the end of the first six months of 2020, long-term debt totaled $3,050.6 million compared with $2,984.1 million at the end of 2019.
Net cash used in operating activities increased to $559.7 million at the end of second-quarter 2020 against net cash inflow of $471.7 million at the end of second-quarter 2019.
Capital expenditures summed $20 million during the second quarter, down from $37 million in the prior-year quarter.
Zacks Rank
Spirit AeroSystems has a Zacks Rank #5 (Strong Sell).
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #3 (Hold) company, reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Curtiss-Wright Corporation (CW - Free Report) , a Zacks Rank #3 company, reported second-quarter 2020 adjusted earnings of $1.31 per share, which surpassed the Zacks Consensus Estimate of $1.29 by 1.6%.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
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Spirit AeroSystems (SPR) Q2 Earnings Miss, Revenues Down Y/Y
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported second-quarter 2020 adjusted loss of $2.28 per share, wider than the Zacks Consensus Estimates of a loss of $1.19. In the previous year’s second quarter, the company reported adjusted earnings of $1.71 per share.
Barring one-time adjustments, the company reported a GAAP loss of $2.46 per share against the earnings of $1.61 in the year-ago quarter.
Highlights of the Release
Total revenues of $644.6 million missed the Zacks Consensus Estimate of $806 million by 20%. Moreover, the top line plunged a massive 68% from $2,016 million in the year-ago period. The decline in revenues was primarily due to the significantly lower 737 MAX production, resulting from the grounding of the program, and the impacts of COVID-19.
Backlog at the end of second-quarter 2020 was $41 billion, lower than $42 billion in the prior quarter.
Segment Performance
Fuselage Systems: Revenues in the segment declined 70.2% to $327.1 million from $1,096.8 million registered in second-quarter 2019, primarily due to lower production volumes on the Boeing 737 and 787, and Airbus A350 programs.
Propulsion Systems: The segment recorded revenues of $169.6 million in the reported quarter, down 67.3% from $518.9 million a year ago. The downside can be attributed to lower production volumes on the Boeing 737 program.
Wing Systems: Revenues in the segment deteriorated 69.3% to $122.5 million from $398.5 million in the prior-year quarter. The downside was primarily due to lower production volumes on the Boeing 737 and Airbus A320 and A350 programs.
Operational Highlights
Total operating costs and expenses declined 43.5% year over year to $1,011.6 million on account of lower cost of sales; decreased selling, general and administrative expenses; and reduced research and development expenses.
The company incurred an operating loss of $367 million in the second quarter of 2020 against operating earnings of $226 million in the prior-year quarter.
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
Spirit Aerosystems Holdings, Inc. price-consensus-eps-surprise-chart | Spirit Aerosystems Holdings, Inc. Quote
Financial Position
As of Jul 2, 2020, Spirit AeroSystems had $1,947.1 million in cash and cash equivalents compared with $2,350.5 million as of Dec 31, 2019.
At the end of the first six months of 2020, long-term debt totaled $3,050.6 million compared with $2,984.1 million at the end of 2019.
Net cash used in operating activities increased to $559.7 million at the end of second-quarter 2020 against net cash inflow of $471.7 million at the end of second-quarter 2019.
Capital expenditures summed $20 million during the second quarter, down from $37 million in the prior-year quarter.
Zacks Rank
Spirit AeroSystems has a Zacks Rank #5 (Strong Sell).
Recent Defense Releases
Teledyne Technologies (TDY - Free Report) , a Zacks Rank #2 (Buy) company, reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #3 (Hold) company, reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Curtiss-Wright Corporation (CW - Free Report) , a Zacks Rank #3 company, reported second-quarter 2020 adjusted earnings of $1.31 per share, which surpassed the Zacks Consensus Estimate of $1.29 by 1.6%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>