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Spirit AeroSystems (SPR) Q4 Earnings Miss, Revenues Slump Y/Y

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Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported fourth-quarter 2020 adjusted loss of $1.31 per share, wider than the Zacks Consensus Estimates of a loss of 67 cents. In the fourth quarter of 2019, the company had reported adjusted earnings of 79 cents per share.

Barring one-time adjustments, the company incurred GAAP loss of $2.85 per share against earnings of 65 cents in the year-ago quarter.

For 2020, the company reported adjusted loss of $5.72 per share, which came in wider than the Zacks Consensus Estimate of a loss of $5.03. The full-year bottom line figure deteriorated from earnings of $5.54 recorded in 2019.

 

Highlights of the Release

Total revenues of $877 million missed the Zacks Consensus Estimate of $910 million by 3.6%. Moreover, the top line plunged 55% from $1,959 million in the year-ago period. The decline in revenues was primarily due to significantly lower 737 MAX production resulting from the program’s grounding and also due to the impacts of the COVID-19 pandemic.

For 2020, the company generated revenues worth $3.41 billion, which missed the Zacks Consensus Estimate of $3.46 billion by 1.4%. The full-year revenue figure also deteriorated 57% from the year-ago period.   

Backlog at the end of fourth-quarter 2020 was $34 billion, lower than $40 billion in the prior quarter.

Segment Performance

Fuselage Systems: Revenues in the segment declined 58.8% year over year to $426 million, primarily due to lower production volumes of Boeing 737 and 787 as well as Airbus A350 programs.

Propulsion Systems: The segment recorded revenues of $218.9 million in the reported quarter, down 58.9% from $532.3 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 44.6% to $216.4 million from $390.9 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 47.5% year over year to $978 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 $101.4 million in the fourth quarter of 2020 against operating earnings of $95.7 million in the prior-year quarter.

Financial Position

As of Dec 31, 2020, Spirit AeroSystems had $1,873.7 million in cash and cash equivalents compared with $2,350.5 million as of Dec 31, 2019.

At the end of 2020, long-term debt totaled $3,532.9 million compared with $2,984.1 million at the end of 2019.

Net cash used in operating activities came in at $744.9 million at the end of 2020 against net cash inflow of $922.7 million at the end of 2019.

Capital expenditures totaled $119 million during 2020, down from $232 million in the prior-year.

Zacks Rank

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

Other Defense Q4 Releases

Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $6.38 per share, which came in line with the Zacks Consensus Estimate.

Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2020 loss of 18 cents per share, in line with the Zacks Consensus Estimate.

General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $3.49 per share, which missed the Zacks Consensus Estimate of $3.55 by 1.7%.

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