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Spirit AeroSystems (SPR) Q1 Earnings Beat, Revenues Fall Y/Y
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Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported first-quarter 2020 adjusted loss of 79 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.42. The bottom line however deteriorated from the year-ago quarter’s earnings of $1.68.
Including one-time adjustments, the company reported GAAP loss of $1.57 per share against earnings of $1.55 in the year-ago quarter.
The year-over-year deterioration can be attributed to lower margins and higher restructuring expenses that the company witnessed as a result of production suspension of Boeing (BA - Free Report) 737.
Highlights of the Release
Total revenues of $1,077 million exceeded the Zacks Consensus Estimate of $973 million by 10.7%. However, the top line declined a staggering 45% on a year-over-year basis.
Backlog at the end of first-quarter 2020 was $42 billion compared with $43 million at the end of 2019.
Spirit Aerosystems Holdings Inc Price, Consensus and EPS Surprise
Fuselage Systems: Revenues at the segment declined 48% year over year to $552 million infirst-quarter 2020. Lower production volumes of the Boeing 737 program resulting from the production suspension that began from Jan 1, 2020 caused the top-line deceleration.
Operating loss for the first quarter of 2020 decreased to $86.4 million against operating earnings of $138.9 million in the year-ago quarter.
Propulsion Systems: The segment recorded revenues of $225 million in the reported quarter, down 54% year over year. The decline can be attributed to lower production volumes from the Boeing 737 program.
Operating loss for the first quarter of 2020 decreased to $5.3 million against operating earnings of $95.5 million in the year-ago quarter.
Wing Systems: Revenues at the segment decreased 29% year over year to $291 million in the first quarter. The decline can be attributed to lower production volumes from the Boeing 737 program as well as lower revenues recognized on the Airbus A350 program as a result of pricing terms.
Operating earnings for the first quarter of 2020 decreased to $13.6 million from $65.8 million in the year-ago quarter.
Operational Highlights
Total operating costs and expenses declined 28.3% year over year to $1,244.8 million on account of lower cost of sales; selling, general and administrative expenses; as well as reduced research and development expenses.
The company incurred operating loss of $167.5 million in the first quarter of 2020 against operating earnings of $233 million in the prior-year quarter.
Financial Position
As of Apr 2, 2020, Spirit AeroSystems had $1,833.6 million in cash and cash equivalents compared with $2,350.5 million as of Dec 31, 2019.
At the end of first-quarter 2020, long-term debt totaled $2,978.2 million compared with $2,984.1 million at the end of 2019.
Cash outflow from operating activities was $331.3 million at the end of first-quarter 2020 against cash inflow of $242.2 million at the end of 2019.
Capital expenditures totaled $31 million in first-quarter 2020 compared with $41 million in the prior-year quarter.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%.
General Dynamics Corporation (GD - Free Report) reported first-quarter 2020 earnings from continuing operations of $2.43 per share, which missed the Zacks Consensus Estimate of $2.46 by 1.2%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Spirit AeroSystems (SPR) Q1 Earnings Beat, Revenues Fall Y/Y
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported first-quarter 2020 adjusted loss of 79 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.42. The bottom line however deteriorated from the year-ago quarter’s earnings of $1.68.
Including one-time adjustments, the company reported GAAP loss of $1.57 per share against earnings of $1.55 in the year-ago quarter.
The year-over-year deterioration can be attributed to lower margins and higher restructuring expenses that the company witnessed as a result of production suspension of Boeing (BA - Free Report) 737.
Highlights of the Release
Total revenues of $1,077 million exceeded the Zacks Consensus Estimate of $973 million by 10.7%. However, the top line declined a staggering 45% on a year-over-year basis.
Backlog at the end of first-quarter 2020 was $42 billion compared with $43 million at the end of 2019.
Spirit Aerosystems Holdings Inc Price, Consensus and EPS Surprise
Spirit Aerosystems Holdings Inc price-consensus-eps-surprise-chart | Spirit Aerosystems Holdings Inc Quote
Segment Performance
Fuselage Systems: Revenues at the segment declined 48% year over year to $552 million infirst-quarter 2020. Lower production volumes of the Boeing 737 program resulting from the production suspension that began from Jan 1, 2020 caused the top-line deceleration.
Operating loss for the first quarter of 2020 decreased to $86.4 million against operating earnings of $138.9 million in the year-ago quarter.
Propulsion Systems: The segment recorded revenues of $225 million in the reported quarter, down 54% year over year. The decline can be attributed to lower production volumes from the Boeing 737 program.
Operating loss for the first quarter of 2020 decreased to $5.3 million against operating earnings of $95.5 million in the year-ago quarter.
Wing Systems: Revenues at the segment decreased 29% year over year to $291 million in the first quarter. The decline can be attributed to lower production volumes from the Boeing 737 program as well as lower revenues recognized on the Airbus A350 program as a result of pricing terms.
Operating earnings for the first quarter of 2020 decreased to $13.6 million from $65.8 million in the year-ago quarter.
Operational Highlights
Total operating costs and expenses declined 28.3% year over year to $1,244.8 million on account of lower cost of sales; selling, general and administrative expenses; as well as reduced research and development expenses.
The company incurred operating loss of $167.5 million in the first quarter of 2020 against operating earnings of $233 million in the prior-year quarter.
Financial Position
As of Apr 2, 2020, Spirit AeroSystems had $1,833.6 million in cash and cash equivalents compared with $2,350.5 million as of Dec 31, 2019.
At the end of first-quarter 2020, long-term debt totaled $2,978.2 million compared with $2,984.1 million at the end of 2019.
Cash outflow from operating activities was $331.3 million at the end of first-quarter 2020 against cash inflow of $242.2 million at the end of 2019.
Capital expenditures totaled $31 million in first-quarter 2020 compared with $41 million in the prior-year quarter.
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.
Recent Defense Releases
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%.
General Dynamics Corporation (GD - Free Report) reported first-quarter 2020 earnings from continuing operations of $2.43 per share, which missed the Zacks Consensus Estimate of $2.46 by 1.2%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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