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Spirit AeroSystems Holdings, Inc. (SPR - Free Report) posted fourth-quarter 2016 adjusted earnings of 89 cents per share, which missed the Zacks Consensus Estimate of $1.02 by 12.7%. Earnings also fell 6.3% from the year-ago figure of 95 cents owing to a decline in revenues.
For 2016, the company reported adjusted earnings of $4.56 per share, which also missed the Zacks Consensus Estimate of $4.69 by 2.8%. However, on a year-over-year basis, the full-year earnings figure improved 16%.
Highlights of the Release
Total revenue of $1.57 billion in the fourth quarter missed the Zacks Consensus Estimate of $1.62 billion by 3.1%. Revenues were also down 2% year over year.
For 2016, the company generated revenues of $6.79 billion, which missed the Zacks Consensus Estimate of $6.84 billion by 0.7%. Full-year revenues however increased 2% year over year.
Backlog at the end of the reported quarter was $47 billion, registering sequential growth of $1 billion.
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
Fuselage Systems: Revenues at the segment dropped 0.4% to $819.1 million from the prior-year figure of $822.8 million due to lower production deliveries under the Boeing 747 and 777 programs.
Propulsion Systems: The segment recorded revenues of $404 million in the reported quarter, down 7.1% from $434.7 million a year ago. The decline was due to lower production deliveries under the Boeing 747 and 777 programs as well as a decline in net revenues recognized on the Boeing 787 program in accordance with pricing terms.
Wing Systems: Revenues at the segment dropped 1.4% to $347.2 million.
Financial Position
As of Dec 31, 2016, Spirit AeroSystems had $697.7 million in cash and cash equivalents, compared with $957.3 million as of Dec 31, 2015.
As of Dec 31, 2016, long-term debt (excluding current portion) was $1,060 million, compared with $1,085.3 million at the end of 2015.
Cash flow from operating activities decreased significantly to $716.9 million in 2016 from $1,289.7 million a year ago.
Capital expenditure totaled $254 million in 2016, compared with $360 million in the prior year.
Guidance
Spirit AeroSystems provided its financial guidance for 2017. The company expects to generate earnings per share in the range of $4.60–$4.85 on revenues in the band of $6.8−$6.9 billion.
Management now expects free cash flow in the range of $450−$500 million for 2017.
Other Aerospace & Defense Releases
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $2.62 per share, beating the Zacks Consensus Estimate of $2.54 by 3.2%. Reported earnings were also up 9.2% year over year.
Pentagon’s prime contractor, Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, surpassing the Zacks Consensus Estimate of $3.04 by 6.9%. Earnings also increased 23.6% from the year-ago level.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 80 cents per share, missing the Zacks Consensus Estimate of 87 cents by 8%.
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Spirit AeroSystems (SPR) Q4 Earnings Miss, Backlog Rises
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) posted fourth-quarter 2016 adjusted earnings of 89 cents per share, which missed the Zacks Consensus Estimate of $1.02 by 12.7%. Earnings also fell 6.3% from the year-ago figure of 95 cents owing to a decline in revenues.
For 2016, the company reported adjusted earnings of $4.56 per share, which also missed the Zacks Consensus Estimate of $4.69 by 2.8%. However, on a year-over-year basis, the full-year earnings figure improved 16%.
Highlights of the Release
Total revenue of $1.57 billion in the fourth quarter missed the Zacks Consensus Estimate of $1.62 billion by 3.1%. Revenues were also down 2% year over year.
For 2016, the company generated revenues of $6.79 billion, which missed the Zacks Consensus Estimate of $6.84 billion by 0.7%. Full-year revenues however increased 2% year over year.
Backlog at the end of the reported quarter was $47 billion, registering sequential growth of $1 billion.
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise | Spirit Aerosystems Holdings, Inc. Quote
Segment Performance
Fuselage Systems: Revenues at the segment dropped 0.4% to $819.1 million from the prior-year figure of $822.8 million due to lower production deliveries under the Boeing 747 and 777 programs.
Propulsion Systems: The segment recorded revenues of $404 million in the reported quarter, down 7.1% from $434.7 million a year ago. The decline was due to lower production deliveries under the Boeing 747 and 777 programs as well as a decline in net revenues recognized on the Boeing 787 program in accordance with pricing terms.
Wing Systems: Revenues at the segment dropped 1.4% to $347.2 million.
Financial Position
As of Dec 31, 2016, Spirit AeroSystems had $697.7 million in cash and cash equivalents, compared with $957.3 million as of Dec 31, 2015.
As of Dec 31, 2016, long-term debt (excluding current portion) was $1,060 million, compared with $1,085.3 million at the end of 2015.
Cash flow from operating activities decreased significantly to $716.9 million in 2016 from $1,289.7 million a year ago.
Capital expenditure totaled $254 million in 2016, compared with $360 million in the prior year.
Guidance
Spirit AeroSystems provided its financial guidance for 2017. The company expects to generate earnings per share in the range of $4.60–$4.85 on revenues in the band of $6.8−$6.9 billion.
Management now expects free cash flow in the range of $450−$500 million for 2017.
Other Aerospace & Defense Releases
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $2.62 per share, beating the Zacks Consensus Estimate of $2.54 by 3.2%. Reported earnings were also up 9.2% year over year.
Pentagon’s prime contractor, Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, surpassing the Zacks Consensus Estimate of $3.04 by 6.9%. Earnings also increased 23.6% from the year-ago level.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 80 cents per share, missing the Zacks Consensus Estimate of 87 cents by 8%.
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.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>