Spirit Aerosystems Holdings, Inc. (SPR - Free Report) , a designer and manufacturer of aero structures for both commercial and defense aircraft, is set to release second-quarter 2018 results on Aug 1, before the opening bell.
Increased demand for Boeing’s 737 and Airbus’s A350 jets is expected to boost Spirit AeroSystems’ second-quarter revenues. However, contributions from higher production rates, expected to boost bottom line in late 2018, are projected to hurt quarterly earnings this time.
Let’s see how things are shaping up prior to this announcement.
Will Fuselage Systems Drive Growth?
Fuselage Systems segment, which represents more than 50% of Spirit AeroSystems’ total sales, has been a major growth driver for the company. The revenues at the segment increased 5% year over year in the first quarter of 2018, driven by higher production deliveries of Boeing 737 and Airbus A350 jets.
Keeping this trend alive, deliveries for Boeing 737 rose 11.4% year over year to 137 in the second quarter, while the same for Airbus A350 rose 33% to 40. Such delivery upside is likely to boost revenue growth of Spirit Aerosystems’ Fuselage Systems segment. Evidently, the Zacks Consensus Estimate for the segment’s second-quarter sales is pegged at $952 million, reflecting year-over-year rise of 4%.
Can Propulsion Systems Hurt?
The company’s Propulsion Systems Segment, witnessed a decline in revenues during the first quarter of 2018, due to lower production deliveries for Boeing 777 jets. With the delivery for the 777 program having witnessed a significant 38.1% plunge during the second quarter, we may expect the segment to once again deliver poor performance in terms of top-line figure. In line with this, the Zacks Consensus Estimate for the segment’s second-quarter sales is pegged at $408 million, reflecting a year-over-year decline of 9.7%.
Spirit Aerosystems Holdings, Inc. Price and EPS Surprise
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