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Spirit AeroSystems (SPR) Q1 Earnings Beat, Revenues Up Y/Y

Zacks Equity Research

Spirit AeroSystems Holdings, Inc. SPR reported first-quarter 2019 adjusted earnings of $1.68 per share, which surpassed the Zacks Consensus Estimate of $1.67. Year over year, the bottom line registered an improvement of 53% from $1.10 per share.

 

Barring one-time adjustments, the company reported GAAP earnings of $1.55 per share compared with $1.10 in the year-ago quarter.

 

Highlights of the Release

 

Total revenues of $1,968 million exceeded the Zacks Consensus Estimate of $1,940 million by 1.44%. Moreover, the top line rose 13% from $1,736 million on a year-over-year basis.
 

Backlog at the end of first-quarter 2019 was $48 billion, in line with the prior quarter’s number.

 

Segment Performance

 

Fuselage Systems: Revenues at the segment grew 11.1% to $1,069.6 million from $962.7 million registered in first-quarter 2018. Higher production volumes in the Boeing 737 and 787 programs in addition to higher revenues recognized for the Boeing 787 program activity drove the top line.

 

Propulsion Systems: The segment recorded revenues of $485.7 million in the reported quarter, up 23.1% from $394.5 million a year ago. The uptick can be attributed to higher production volumes and model mix in the Boeing 737 program, and higher revenues recognized for the Boeing 787 program.

 

Wing Systems: Revenues at the segment rose 8.2% to $407.9 million from $377 million in the prior-year quarter. The upside was primarily due to higher production volumes in the Boeing 737, 777 and 787 programs as well as higher wing deliveries for the Airbus A350 program.
 

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

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

Financial Position

As of Mar 28, 2019, Spirit AeroSystems had $1,228.4 million in cash and cash equivalents compared with $773.6 million as on Dec 31, 2018.

At the end of the first three months of 2019, long-term debt totaled $2,214.9 million compared with $1,864 million at the end of 2018.

 

Cash flow from operating activities increased to $242.2 million at the end of first-quarter 2019 from $166.6 million at the end of first-quarter 2018.

 

Capital expenditures summed $41 million during the first quarter, down from $48 million in the prior-year quarter.

 

Guidance

 

Management has announced that the company’s new guidance will be issued later, as the prior 2019 guidance did not reflect the 737 MAX production schedule changes.

 

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

 

Textron Inc. TXT reported first-quarter 2019 earnings from continuing operations of 76 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 8.6%.

 

Lockheed Martin Corp. LMT reported first-quarter 2019 earnings of $5.99 per share, which surpassed the Zacks Consensus Estimate of $4.29 by 39.6%.

 

An Upcoming Defense Release

 

Huntington Ingalls Industries, Inc. HII carries a Zacks Rank #3 and is expected to report first-quarter 2019 results on May 2.

 

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