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Spirit Aero Systems Scales 52-Week High on Upbeat Outlook
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Shares of Spirit AeroSystems Holdings, Inc. (SPR - Free Report) touched a new 52-week high of $58.80 in Friday’s trading session before closing at $58.70.
Over the past 52 weeks, the company’s shares have ranged from a low of $40.03 on Feb 03, 2016 to a high of $58.80 on Nov 25, 2016. The average volume of shares traded over the last three months was1.23 million.
What’s Driving the Stock?
Spirit AeroSystems is pursuing an aggressive cost management program to improve its liquidity profile.In the third quarter, free cash flow stood at $214 million, compared with $76 million in the prior-year quarter.
On the A350 program, the company delivered 16 shipsets in the third quarter, while deferred inventory decreased by $14 million or $870,000 per shipset,reflectingimmense credibility of the Spirit airbus team.
Recently, Spirit AeroSystems posted adjusted earnings of $1.16 per share for the third quarter of 2016, beating the Zacks Consensus Estimate of $1.07 by 8.4%. Earnings also surged 30.3% from the year-ago figure of 89 cents.
Spirit AeroSystems raised its revenue forecast for 2016 to the range of $6.7−$6.8 billion from itsprevious expectation of $6.6 billion to $6.7 billion. Meanwhile, earnings are now projected in the range of $3.55−$3.80 per share, compared with $3.45−$3.65 expected earlier.
Despite touching a 52-week high, the price of the company has underperformed the Zacks Categorized Aerospace-Defense Equipment industry in the last twelve months. The current rate of return for the industry is 15.77% while that of Spirit AeroSystems is 11.92%.
The gap was widest in Jun 2016 but has started to narrow down October onward. However, the company's failure to finalize a new master supply agreement with its most important customer, The Boeing Company (BA - Free Report) , after over two years of negotiations is a major setback and could adversely impact its share price.
Zacks Rank &Key Picks
Spirit AeroSystems currently carries a Zacks Rank #2 (Buy). Other favorably placed stocks in the Aerospace sector include Northrop Grumman Corp. (NOC - Free Report) and Lockheed Martin Corp. (LMT - Free Report) .
Northrop Grumman has seen seven upward estimate revisions for 2016 over the last 60 days. Its estimates have moved from $11.06 to $11.74, reflecting an upside of 6.1%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lockheed Martin has seen two upward estimate revisions for 2016 over the last 60 days.Its estimates have increased from $11.73 to $12.18, indicating a riseof 3.8%. The stock carries a Zacks Rank #2 (Buy).
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Spirit Aero Systems Scales 52-Week High on Upbeat Outlook
Shares of Spirit AeroSystems Holdings, Inc. (SPR - Free Report) touched a new 52-week high of $58.80 in Friday’s trading session before closing at $58.70.
Over the past 52 weeks, the company’s shares have ranged from a low of $40.03 on Feb 03, 2016 to a high of $58.80 on Nov 25, 2016. The average volume of shares traded over the last three months was1.23 million.
What’s Driving the Stock?
Spirit AeroSystems is pursuing an aggressive cost management program to improve its liquidity profile.In the third quarter, free cash flow stood at $214 million, compared with $76 million in the prior-year quarter.
On the A350 program, the company delivered 16 shipsets in the third quarter, while deferred inventory decreased by $14 million or $870,000 per shipset,reflectingimmense credibility of the Spirit airbus team.
SPIRIT AEROSYS Price and Consensus
SPIRIT AEROSYS Price and Consensus | SPIRIT AEROSYS Quote
Recently, Spirit AeroSystems posted adjusted earnings of $1.16 per share for the third quarter of 2016, beating the Zacks Consensus Estimate of $1.07 by 8.4%. Earnings also surged 30.3% from the year-ago figure of 89 cents.
Spirit AeroSystems raised its revenue forecast for 2016 to the range of $6.7−$6.8 billion from itsprevious expectation of $6.6 billion to $6.7 billion. Meanwhile, earnings are now projected in the range of $3.55−$3.80 per share, compared with $3.45−$3.65 expected earlier.
Despite touching a 52-week high, the price of the company has underperformed the Zacks Categorized Aerospace-Defense Equipment industry in the last twelve months. The current rate of return for the industry is 15.77% while that of Spirit AeroSystems is 11.92%.
The gap was widest in Jun 2016 but has started to narrow down October onward. However, the company's failure to finalize a new master supply agreement with its most important customer, The Boeing Company (BA - Free Report) , after over two years of negotiations is a major setback and could adversely impact its share price.
Zacks Rank &Key Picks
Spirit AeroSystems currently carries a Zacks Rank #2 (Buy). Other favorably placed stocks in the Aerospace sector include Northrop Grumman Corp. (NOC - Free Report) and Lockheed Martin Corp. (LMT - Free Report) .
Northrop Grumman has seen seven upward estimate revisions for 2016 over the last 60 days. Its estimates have moved from $11.06 to $11.74, reflecting an upside of 6.1%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lockheed Martin has seen two upward estimate revisions for 2016 over the last 60 days.Its estimates have increased from $11.73 to $12.18, indicating a riseof 3.8%. The stock carries a Zacks Rank #2 (Buy).
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>