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Spirit AeroSystems (SPR) Q1 Earnings Lag, Revenues Rise Y/Y

Shares of Spirit AeroSystems Holdings, Inc. SPR declined 6.6% to reach $24.54 on May 5, thereby reflecting investors’ skepticism following its first-quarter 2023 result release.

The company reported a first-quarter 2023 adjusted loss of $1.69 per share, which was wider than the Zacks Consensus Estimate of a loss of 31 cents. The figure also deteriorated significantly from the year-ago quarter’s reported earnings of 3 cents per share.

Barring one-time adjustments, Spirit AeroSystems recorded a GAAP loss of $2.68 per share compared with a loss of 51 cents in the prior-year period.

Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise

Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise

Spirit Aerosystems Holdings, Inc. price-consensus-eps-surprise-chart | Spirit Aerosystems Holdings, Inc. Quote

Highlights of the Release

Total revenues of $1,431 million lagged the Zacks Consensus Estimate of $1,478 million by 3.1%. However, the top line rose 22% on a year-over-year basis, driven by higher production deliveries of the Boeing 737 and increased Defense and Space revenues.

The company’s backlog at the end of the first quarter totaled $37 billion, which came in line with the year-ago quarter’s level.

Segmental Performance

Commercial Segment: Revenues in the segment increased 22.4% year over year to $1,148.5 million, driven by increased production revenues from the Boeing 737 and 777 programs.

Operating loss widened to $45.5 million from $3.4 million in the year-ago period.

Defense & Space: The segment recorded revenues of $188.4 million, up 18.9% year over year. The upside can be attributed to increased activity on development programs and higher production in the Boeing P-8 program.

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Operating income decreased 4% to $19.2 million from $20 million in the prior-year quarter.

Aftermarket: The top line improved 21.5% year over year to $94.5 million, driven by higher spare part sales.

Operating profit increased 6.7% year over year to $19.2 million.

Operational Highlights

Total operating costs and expenses rose 25.4% year over year to $1,526.5 million due to higher cost of sales, selling, general and administrative expenses, and restructuring costs.

SPR’s operating loss came in at $95.1 million compared with $42.2 million in the prior-year period. This increase was mainly on account of higher changes in estimates during the first quarter of 2023, and the absence of income related to the Aviation Manufacturing Jobs Protection Program recognized in the first quarter of 2022.

Financial Position

As of Mar 30, 2023, Spirit AeroSystems had $567.8 million in cash and cash equivalents compared with $658.6 million as of Dec 31, 2022.

The long-term debt as of Mar 30, 2023 totaled $3,815.8 million compared with $3,814.9 million at the end of 2022.

Cash outflow from operating activities was $46.2 million in first-quarter 2023 compared with $270.2 million a year ago.

Zacks Rank

Spirit AeroSystems 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

The Boeing Company BA incurred an adjusted loss of $1.27 per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $2.75 per share.

Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.

Hexcel Corporation HXL reported first-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 28.2%. The bottom line also improved massively from the year-ago quarter’s level of 22 cents, highlighting solid growth of 127.3%.

The company registered GAAP earnings of 50 cents per share compared with the prior-year quarter’s 21 cents.

Lockheed Martin Corporation LMT reported first-quarter 2023 adjusted earnings of $6.43 per share, which outpaced the Zacks Consensus Estimate of $6.07 by 5.9%. However, the bottom line was on par with the year-ago quarter's level.

Net sales amounted to $15.13 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line rose 1.1% from $14.96 billion in the year-ago quarter.

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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report

Spirit Aerosystems Holdings, Inc. (SPR) : Free Stock Analysis Report

Hexcel Corporation (HXL) : Free Stock Analysis Report

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