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-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.
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.
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.
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.
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.
Spirit AeroSystems has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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