Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported first-quarter 2018 earnings of $1.10 per share, which missed the Zacks Consensus Estimate of $1.35 by 18.5%. The bottom-line figure also came in lower by 6% than the year-ago quarter’s figure of $1.17.
Highlights of the Release
Total revenues of $1,736 million in the first quarter surpassed the Zacks Consensus Estimate of $1,703 million by 2%. The top line also rose 2% on a year-over-year basis.
Backlog at the end of first-quarter 2018 was $47 billion, flat with the prior-quarter’s figure.
Segment Performance
Fuselage Systems: Revenues at the segment grew 5% to $962.7 million from the prior-year figure of $916.9 million. Higher production deliveries of the 737 and Airbus A350 programs as well as increased defense work and non-recurring activities on certain Boeing programs drove the revenue upside.
Propulsion Systems: The segment recorded revenues of $394.5 million in the quarter, down 2.9% from $406.3 million a year ago. The downside can be attributed to lower production deliveries on the Boeing 777 program as well as lower revenues recognized on the Boeing 787 program.
Wing Systems: Revenues at the segment increased 2.2% to $377 million from $369 million in the prior-year quarter. The uptick was owing to higher wing deliveries on the Boeing 737 and Airbus A320 programs.
Financial Position
As of Mar 29, 2018, Spirit AeroSystems had $437.9 million in cash and cash equivalents compared with $423.3 as of Dec 31, 2017.
As of Mar 29, 2018, long-term debt (excluding current portion) was $1,112.6 million compared with $1,119.9 million at the end of 2017.
Cash flow from operating activities increased to $166.6 million at the end of first-quarter 2018 from $111.7 million at the end of first-quarter 2017.
Capital expenditures totaled $48 million in the reported quarter compared with $41 million in the year-ago quarter.
Guidance
Spirit AeroSystems reiterated financial guidance for 2018. The company continues to expect to generate earnings in the range of $6.25-$6.50 on revenues of $7.1-$7.2 billion.
Management also continues to expect free cash flow in the band of $550-$600 million for 2018.
Zacks Rank
Spirit AeroSystems 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
L3 Technologies, Inc. posted first-quarter 2018 earnings of $2.34 per share from continuing operations, surpassing the Zacks Consensus Estimate of $1.99 by 2.2%.
Embraer SA (ERJ - Free Report) incurred a loss of 13 cents per share in first-quarter 2018, wider than the Zacks Consensus Estimate of a loss of a penny.
The Boeing Company (BA - Free Report) reported adjusted earnings of $3.64 per share in first-quarter 2018, beating the Zacks Consensus Estimate of $2.59 by 40.5%.
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Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported first-quarter 2018 earnings of $1.10 per share, which missed the Zacks Consensus Estimate of $1.35 by 18.5%. The bottom-line figure also came in lower by 6% than the year-ago quarter’s figure of $1.17.
Highlights of the Release
Total revenues of $1,736 million in the first quarter surpassed the Zacks Consensus Estimate of $1,703 million by 2%. The top line also rose 2% on a year-over-year basis.
Backlog at the end of first-quarter 2018 was $47 billion, flat with the prior-quarter’s figure.
Segment Performance
Fuselage Systems: Revenues at the segment grew 5% to $962.7 million from the prior-year figure of $916.9 million. Higher production deliveries of the 737 and Airbus A350 programs as well as increased defense work and non-recurring activities on certain Boeing programs drove the revenue upside.
Propulsion Systems: The segment recorded revenues of $394.5 million in the quarter, down 2.9% from $406.3 million a year ago. The downside can be attributed to lower production deliveries on the Boeing 777 program as well as lower revenues recognized on the Boeing 787 program.
Wing Systems: Revenues at the segment increased 2.2% to $377 million from $369 million in the prior-year quarter. The uptick was owing to higher wing deliveries on the Boeing 737 and Airbus A320 programs.
Financial Position
As of Mar 29, 2018, Spirit AeroSystems had $437.9 million in cash and cash equivalents compared with $423.3 as of Dec 31, 2017.
As of Mar 29, 2018, long-term debt (excluding current portion) was $1,112.6 million compared with $1,119.9 million at the end of 2017.
Cash flow from operating activities increased to $166.6 million at the end of first-quarter 2018 from $111.7 million at the end of first-quarter 2017.
Capital expenditures totaled $48 million in the reported quarter compared with $41 million in the year-ago quarter.
Guidance
Spirit AeroSystems reiterated financial guidance for 2018. The company continues to expect to generate earnings in the range of $6.25-$6.50 on revenues of $7.1-$7.2 billion.
Management also continues to expect free cash flow in the band of $550-$600 million for 2018.
Zacks Rank
Spirit AeroSystems 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
L3 Technologies, Inc. posted first-quarter 2018 earnings of $2.34 per share from continuing operations, surpassing the Zacks Consensus Estimate of $1.99 by 2.2%.
Embraer SA (ERJ - Free Report) incurred a loss of 13 cents per share in first-quarter 2018, wider than the Zacks Consensus Estimate of a loss of a penny.
The Boeing Company (BA - Free Report) reported adjusted earnings of $3.64 per share in first-quarter 2018, beating the Zacks Consensus Estimate of $2.59 by 40.5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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