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Spirit AeroSystems (SPR) Q4 Earnings Lag Estimates, Revenues Top

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Spirit AeroSystems Holdings, Inc.(SPR - Free Report) incurred a fourth-quarter 2021 adjusted loss of 84 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 63 cents. However, the bottom line improved from the year-ago quarter’s loss of $1.31 per share.

Including one-time adjustments, the company reported a GAAP loss of $1.15 per share compared with a loss of $2.85 in the year-ago quarter.

The year-over-year upside was primarily driven by higher production of Boeing 737 jets and income recognized from the Aviation Manufacturing Jobs Protection Program awarded during the third quarter of 2021.

The company reported an adjusted loss per share of $3.46 for full-year 2021, which improved from a loss of $5.72 reported in 2020. The full-year loss was wider than the Zacks Consensus Estimate of loss of $3.25 per share.

Highlights of the Release

Total revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 2.8%. Moreover, the top line improved 22% on a year-over-year basis from $877 million. The upside was driven by higher production deliveries of Boeing 737 jets and increased revenues from the recently acquired A220 wing and Bombardier programs.

During full-year 2021, Spirit AeroSystems generated sales worth $3.95 billion, up 16% from the year-ago figure. Full-year sales surpassed the Zacks Consensus Estimate of $3.92 billion by 0.8%.

Backlog

The backlog at the end of the fourth quarter of 2021 was $35 billion compared with $33 billion at the end of the third quarter of 2021.

Segment Performance

Commercial Segment:Revenues in the segment increased 22% year over year to $844.3 million in the fourth quarter of 2021, primarily due to higher production volumes from the Boeing 737 and the recently acquired A220 and Bombardier programs.

Operating loss for the fourth quarter of 2021 narrowed to $20.2 million from an operating loss of $59.7 million in the year-ago quarter.

Defense & Space:The segment recorded revenues of $152 million in the reported quarter, up 11% year over year. The upside can be attributed to increased production volumes from the Boeing P-8 program.

Operating income for the fourth quarter of 2021 decreased 36.2% to $12 million from $18.8 million in the year-ago quarter.

Aftermarket:Revenues in the segment improved a solid 48.5% year over year to $73.8 million in the fourth quarter, primarily due to the inclusion of a full quarter of maintenance, repair and overhaul activity from Belfast, Northern Ireland and Dallas, TX sites, which were acquired late in the fourth quarter of 2020. Also, higher spare part sales contributed to this unit’s top line.

Operating profit for the fourth quarter of 2021 increased solid 100% to $16.8 million.

Operational Highlights

Total operating costs and expenses increased 17.5% year over year to $1,149.1 million on account of the higher cost of sales, SG&A expenses as well as research and development expenses.

The company incurred an operating loss of $79 million in the fourth quarter of 2021 compared with $101.4 million in the prior-year quarter.

Financial Position

At the end of 2021, SPR had $1,478.6 million of cash and cash equivalents compared with $1,873.3 million as of Dec 31, 2020.

At the end of 2021, long-term debt totaled $3,742.7 million compared with $3,532.9 million at the end of 2020.

Cash outflow from operating activities was $63.2 million at the end of 2021 compared with $744.9 million at the end of 2020.

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.
 

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Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2021 adjusted EPS of $1.08 outpaced the Zacks Consensus Estimate of $1.01 by 6.9%.

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Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 EPS indicates year-over-year growth of 16.3%.

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