Yahoo Finance What Do Analysts Think About Spirit AeroSystems Holdings Inc’s (NYSE:SPR) Future?
After Spirit AeroSystems Holdings Inc’s (NYSE:SPR) earnings announcement in June 2018, the consensus outlook from analysts appear fairly confident, as a 30% increase in profits is expected in the upcoming year, though this is noticeably lower than the historical 5-year average earnings growth of 39%. By 2019, we can expect Spirit AeroSystems Holdings’s bottom line to reach US$703m, a jump from the current trailing-twelve-month US$540m. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Spirit AeroSystems Holdings
How will Spirit AeroSystems Holdings perform in the near future?
The longer term expectations from the 18 analysts of SPR is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for SPR, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 11% based on the most recent earnings level of US$355m to the final forecast of US$569m by 2021. This leads to an EPS of $8.51 in the final year of projections relative to the current EPS of $3.04. Growth in earnings appears to be a result of cost cutting activities, as revenues is expected to grow much slower than earnings. Margins is currently sitting at 5.1%, which is expected to expand to 6.9% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Spirit AeroSystems Holdings, there are three pertinent factors you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Spirit AeroSystems Holdings worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Spirit AeroSystems Holdings is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Spirit AeroSystems Holdings? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
