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Spirit AeroSystems (SPR) Q2 Earnings Beat, '17 EPS View Up

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Spirit AeroSystems Holdings, Inc. (SPR - Free Report) posted second-quarter 2017 adjusted earnings of $1.57 per share, beating the Zacks Consensus Estimate by 30.8%. Earnings improved 29.8% from the year-ago figure of $1.21.

Highlights of the Release

Total revenue of $1,826.1 million in the second quarter surpassed the Zacks Consensus Estimate of $1,716.3 million by 6.4%. However, revenues dropped 0.2% year over year.

Backlog at the end of the reported quarter was $46 billion, in line with the prior-quarter backlog figure.

Segment Performance

Fuselage Systems: Revenues at the segment grew 1.6% to $938.2 million from the prior-year figure of $923.6 million. The increase was supported by higher production deliveries for the Boeing 737 and increased defense-related activity.

Propulsion Systems: The segment recorded revenues of $436.5 million in the reported quarter, down 9.4% from $481.7 million a year ago. The decline was due to lower production deliveries under the Boeing 777 program, lower revenues recognized on the Boeing 787 program and decreased GCS&S activity.

Wing Systems: Revenues at the segment increased 6.2% to $450.5 million from $424.2 million in the prior-year quarter.

Financial Position

As of Jun 29, 2017, Spirit AeroSystems had $696.9 million in cash and cash equivalents compared with $697.7 as of Dec 31, 2016.

As of Jun 29, 2017, long-term debt (excluding current portion) was $1,060.6 million compared with $1,060 million at the end of 2016.

Cash flow from operating activities increased to $334 million in the second quarter from $308.8 million in the year-ago period.

Capital expenditure totaled $47 million in the second quarter compared with $54 million in the prior-year quarter.

Guidance

Spirit AeroSystems raised its bottom-line financial guidance for 2017. The company currently expects to generate earnings per share in the range of $5.00–$5.25, up from the prior guidance range of $4.60–$4.85. However, revenues are still expected in the band of $6.8−$6.9 billion.

Management has also raised its free cash flow to $500–$550 million for 2017 from the prior range of $450−$500 million.

Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Peer Releases

Rockwell Collins Inc. reported financial results for third-quarter fiscal 2017 (ended Jun 30, 2017). The company’s adjusted earnings per share of $1.64 surpassed the Zacks Consensus Estimate of $1.58 by 3.8%. Reported earnings also grew 0.6% from $1.63 per share a year ago.

The Boeing Company (BA - Free Report) reported adjusted earnings of $2.55 per share for second-quarter 2017, beating the Zacks Consensus Estimate of $2.32 by 9.9%. In the year-ago quarter, the company had reported a loss of 44 cents.

Raytheon Company  reported second-quarter 2017 adjusted earnings from continuing operations of $1.98 per share, beating the Zacks Consensus Estimate of $1.74 by 13.8%. The figure also improved 5.3% from $1.88 in the year-ago quarter.

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