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Shares of Spirit AeroSystems Holdings, Inc. (SPR - Free Report) rose 13.2% to reach $45.52 on Nov 5 despite lower-than-expected third-quarter results.
The company incurred third-quarter 2021 adjusted loss of $1.13 per share, which was wider than the Zacks Consensus Estimate of a loss of 77 cents.
The bottom line however improved from the year-ago quarter’s loss of $1.34. Including one-time adjustments, the company reported a GAAP loss of $1.09 per share compared with a loss of $1.50 in the year-ago quarter.
The year-over-year upside can be attributed to lower forward loss charges and lower excess capacity costs incurred in the third quarter of 2021 when compared with the last year’s third quarter.
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
Total revenues of $980 million missed the Zacks Consensus Estimate by 2.2%. However, the top line improved 22% on a year-over-year basis from $645 million. The upside was driven by higher production deliveries on the Boeing 737 and increased revenues from the recently acquired A220 wing and Bombardier programs
Backlog at the end of third-quarter 2021 was $33 billion compared with $34 million at the end of second-quarter 2021.
Segment Performance
Fuselage Systems: Revenues in the segment increased 14.3% year over year to $481.2 million in third-quarter 2021, primarily due to higher production volumes from the Boeing 737 and the recently-acquired Bombardier programs.
Operating loss for the third quarter of 2021 narrowed to $53.9 million from an operating loss of $96.7 million in the year-ago quarter.
Propulsion Systems: The segment recorded revenues of $247.8 million in the reported quarter, up 45.1% year over year. The upside can be attributed to increased revenues from the Boeing 737 program and aftermarket sales.
Operating income for the third quarter of 2021 amounted to $21.9 million against an operating loss of $15.6 million in the year-ago quarter.
Wing Systems: Revenues in the segment improved a solid 44.4% year over year to $243 million in the third quarter, driven by increased production deliveries on the Boeing 737, Airbus A320 and A220 programs.
Operating loss for the third quarter of 2021 narrowed to $15.8 million compared with operating loss of $23.2 million in the year-ago quarter.
Operational Highlights
Total operating costs and expenses increased 15.6% year over year to $1,136.6 million on account of a higher cost of sales, selling, general and administrative expenses, as well as research and development expenses.
The company incurred an operating loss of $156.6 million in the third quarter of 2021 compared with an operating loss of $176.9 million in the prior-year quarter.
Financial Position
As of Sep 30, 2021, Spirit AeroSystems had $1,430.6 million of cash and cash equivalents compared with $1,873.3 million as of Dec 31, 2020.
At the end of third-quarter 2021, long-term debt totaled $3,546.7 million compared with $3,532.9 million at the end of 2020.
Cash flow from operating activities was $13.3 million at the end of third-quarter 2021 against cash outflow of $612.8 million at the end of third-quarter 2020.
Zacks Rank
Spirit AeroSystems currently has a Zacks Rank #4 (Sell).
Leidos Holdings, Inc.’s (LDOS - Free Report) third-quarter 2021 adjusted earnings of $1.80 per share exceeded the Zacks Consensus Estimate of $1.60 by 12.5%.
L3Harris Technologies, Inc.’s (LHX - Free Report) third-quarter 2021 adjusted earnings came in at $3.21 per share, which surpassed the Zacks Consensus Estimate of $3.16 by 1.6%.
Huntington Ingalls Industries, Inc.’s (HII - Free Report) third-quarter 2021 adjusted earnings of $3.58 per share declined 4% from $3.73 reported in the prior-year quarter.
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Spirit AeroSystems (SPR) Q3 Earnings Miss, Revenues Rise Y/Y
Shares of Spirit AeroSystems Holdings, Inc. (SPR - Free Report) rose 13.2% to reach $45.52 on Nov 5 despite lower-than-expected third-quarter results.
The company incurred third-quarter 2021 adjusted loss of $1.13 per share, which was wider than the Zacks Consensus Estimate of a loss of 77 cents.
The bottom line however improved from the year-ago quarter’s loss of $1.34.
Including one-time adjustments, the company reported a GAAP loss of $1.09 per share compared with a loss of $1.50 in the year-ago quarter.
The year-over-year upside can be attributed to lower forward loss charges and lower excess capacity costs incurred in the third quarter of 2021 when compared with the last year’s third quarter.
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
Spirit Aerosystems Holdings, Inc. price-consensus-eps-surprise-chart | Spirit Aerosystems Holdings, Inc. Quote
Highlights of the Release
Total revenues of $980 million missed the Zacks Consensus Estimate by 2.2%. However, the top line improved 22% on a year-over-year basis from $645 million. The upside was driven by higher production deliveries on the Boeing 737 and increased revenues from the recently acquired A220 wing and Bombardier programs
Backlog at the end of third-quarter 2021 was $33 billion compared with $34 million at the end of second-quarter 2021.
Segment Performance
Fuselage Systems: Revenues in the segment increased 14.3% year over year to $481.2 million in third-quarter 2021, primarily due to higher production volumes from the Boeing 737 and the recently-acquired Bombardier programs.
Operating loss for the third quarter of 2021 narrowed to $53.9 million from an operating loss of $96.7 million in the year-ago quarter.
Propulsion Systems: The segment recorded revenues of $247.8 million in the reported quarter, up 45.1% year over year. The upside can be attributed to increased revenues from the Boeing 737 program and aftermarket sales.
Operating income for the third quarter of 2021 amounted to $21.9 million against an operating loss of $15.6 million in the year-ago quarter.
Wing Systems: Revenues in the segment improved a solid 44.4% year over year to $243 million in the third quarter, driven by increased production deliveries on the Boeing 737, Airbus A320 and A220 programs.
Operating loss for the third quarter of 2021 narrowed to $15.8 million compared with operating loss of $23.2 million in the year-ago quarter.
Operational Highlights
Total operating costs and expenses increased 15.6% year over year to $1,136.6 million on account of a higher cost of sales, selling, general and administrative expenses, as well as research and development expenses.
The company incurred an operating loss of $156.6 million in the third quarter of 2021 compared with an operating loss of $176.9 million in the prior-year quarter.
Financial Position
As of Sep 30, 2021, Spirit AeroSystems had $1,430.6 million of cash and cash equivalents compared with $1,873.3 million as of Dec 31, 2020.
At the end of third-quarter 2021, long-term debt totaled $3,546.7 million compared with $3,532.9 million at the end of 2020.
Cash flow from operating activities was $13.3 million at the end of third-quarter 2021 against cash outflow of $612.8 million at the end of third-quarter 2020.
Zacks Rank
Spirit AeroSystems currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Leidos Holdings, Inc.’s (LDOS - Free Report) third-quarter 2021 adjusted earnings of $1.80 per share exceeded the Zacks Consensus Estimate of $1.60 by 12.5%.
L3Harris Technologies, Inc.’s (LHX - Free Report) third-quarter 2021 adjusted earnings came in at $3.21 per share, which surpassed the Zacks Consensus Estimate of $3.16 by 1.6%.
Huntington Ingalls Industries, Inc.’s (HII - Free Report) third-quarter 2021 adjusted earnings of $3.58 per share declined 4% from $3.73 reported in the prior-year quarter.