Spirit AeroSystems Holdings, Inc. (SPR - Free Report) posted third-quarter 2017 adjusted earnings of $1.26 per share, which came in line with the Zacks Consensus Estimate. Earnings improved 9% from the year-ago figure of $1.16.
Highlights of the Release
Total revenues of $1,748 million in the third quarter surpassed the Zacks Consensus Estimate of $1,729 million by 1.1%. Moreover, revenues rose 2% year over year.
Backlog at the end of the reported quarter was $45 billion, lower than the prior-quarter figure of $46 billion.
Segment Performance
Fuselage Systems: Revenues at the segment grew 8.7% to $957 million from the prior-year figure of $880.3 million. Higher production deliveries of the Boeing 737 and 787 programs as well as increased defense work and non-recurring activities on certain Boeing programs drove the results.
Propulsion Systems: The segment recorded revenues of $407.9 million in the reported quarter, down 10% from $453 million a year ago. The decline was owing to lower production deliveries on the Boeing 777 program and decreased GCS&S activity.
Wing Systems: Revenues at the segment increased 1.4% to $382.2 million from $376.8 million in the prior-year quarter.
Financial Position
As of Sep 28, 2017, Spirit AeroSystems had $726.6 million in cash and cash equivalents compared with $697.7 as of Dec 31, 2016.
As of Sep 28, 2017, long-term debt (excluding current portion) was $1,060.9 million compared with $1,060 million at the end of 2016.
Cash flow from operating activities increased to $624.6 million in the third quarter from $574.4 million in the year-ago period.
Capital expenditure totaled $51 million in the third quarter compared with $52 million in the prior-year quarter.
Guidance
Spirit AeroSystems reiterated its financial guidance for 2017. The company continues to expect to generate adjusted earnings per share in the range of $5.00-$5.25 and revenues in the band of $6.8-$6.9 billion.
Management has also kept its free cash flow expectation in the range of $500-$550 million for 2017.
Zacks Rank
Spirit AeroSystems currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
Raytheon Company reported third-quarter 2017 earnings from continuing operations of $1.97 per share, beating the Zacks Consensus Estimate of $1.90 by 3.7%. The figure also improved 7.1% from $1.84 recorded in the year-ago quarter.
Rockwell Collins Inc. reported financial results for fourth-quarter fiscal 2017 (ended Sep 30, 2017). The company’s adjusted earnings per share of $1.80 came in line with the Zacks Consensus Estimate. Reported earnings grew 10.4% from $1.63 per share a year ago.
General Dynamics Corporation (GD - Free Report) reported third-quarter 2017 earnings from continuing operations of $2.52 per share, beating the Zacks Consensus Estimate of $2.43 by 3.7%. Its third-quarter total revenues of $7,580 million missed the Zacks Consensus Estimate of $7,892 million by 4%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Spirit AeroSystems Holdings, Inc. (SPR - Free Report) posted third-quarter 2017 adjusted earnings of $1.26 per share, which came in line with the Zacks Consensus Estimate. Earnings improved 9% from the year-ago figure of $1.16.
Highlights of the Release
Total revenues of $1,748 million in the third quarter surpassed the Zacks Consensus Estimate of $1,729 million by 1.1%. Moreover, revenues rose 2% year over year.
Backlog at the end of the reported quarter was $45 billion, lower than the prior-quarter figure of $46 billion.
Segment Performance
Fuselage Systems: Revenues at the segment grew 8.7% to $957 million from the prior-year figure of $880.3 million. Higher production deliveries of the Boeing 737 and 787 programs as well as increased defense work and non-recurring activities on certain Boeing programs drove the results.
Propulsion Systems: The segment recorded revenues of $407.9 million in the reported quarter, down 10% from $453 million a year ago. The decline was owing to lower production deliveries on the Boeing 777 program and decreased GCS&S activity.
Wing Systems: Revenues at the segment increased 1.4% to $382.2 million from $376.8 million in the prior-year quarter.
Financial Position
As of Sep 28, 2017, Spirit AeroSystems had $726.6 million in cash and cash equivalents compared with $697.7 as of Dec 31, 2016.
As of Sep 28, 2017, long-term debt (excluding current portion) was $1,060.9 million compared with $1,060 million at the end of 2016.
Cash flow from operating activities increased to $624.6 million in the third quarter from $574.4 million in the year-ago period.
Capital expenditure totaled $51 million in the third quarter compared with $52 million in the prior-year quarter.
Guidance
Spirit AeroSystems reiterated its financial guidance for 2017. The company continues to expect to generate adjusted earnings per share in the range of $5.00-$5.25 and revenues in the band of $6.8-$6.9 billion.
Management has also kept its free cash flow expectation in the range of $500-$550 million for 2017.
Zacks Rank
Spirit AeroSystems currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
Raytheon Company reported third-quarter 2017 earnings from continuing operations of $1.97 per share, beating the Zacks Consensus Estimate of $1.90 by 3.7%. The figure also improved 7.1% from $1.84 recorded in the year-ago quarter.
Rockwell Collins Inc. reported financial results for fourth-quarter fiscal 2017 (ended Sep 30, 2017). The company’s adjusted earnings per share of $1.80 came in line with the Zacks Consensus Estimate. Reported earnings grew 10.4% from $1.63 per share a year ago.
General Dynamics Corporation (GD - Free Report) reported third-quarter 2017 earnings from continuing operations of $2.52 per share, beating the Zacks Consensus Estimate of $2.43 by 3.7%. Its third-quarter total revenues of $7,580 million missed the Zacks Consensus Estimate of $7,892 million by 4%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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