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Spirit AeroSystems (SPR) Q2 Loss Wider & Revenues Beat

·4 min read

Shares of Spirit AeroSystems Holdings, Inc. SPR have declined 3.5% to reach $30.40 since its second-quarter results. The company reported a second-quarter 2022 adjusted loss of $1.21 per share, wider than the Zacks Consensus Estimate for a loss of 23 cents. The bottom line also deteriorated significantly from the year-ago quarter’s loss of 31 cents per share.

Barring one-time adjustments, the company reported a GAAP loss of $1.17 per share compared with a loss of $1.30 in the year-ago quarter.

Highlights of the Release

Total revenues of $1,258 million exceeded the Zacks Consensus Estimate of $1,246 million by 0.9%. Moreover, the top line rose 26% on a year-over-year basis, driven by the higher production deliveries of the Boeing 737 and increased aftermarket revenues.

The backlog at the end of the second quarter of 2022 was $34 billion compared with $35 million at the end of 2021.

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

Segment Performance

Commercial Segment: Revenues in the segment increased 28.3% year over year to $1,031.1 in the second quarter, driven by higher production volumes on the Boeing 737, 777 and Airbus A220 programs.

The operating loss increased to $45.1 million from an operating loss of $44.7 million in the year-ago quarter.

Defense & Space: The segment recorded revenues of $146.4 million in the reported quarter, up 3.2% year over year. The upside can be attributed to increased production volumes from the Boeing P-8 program and higher development activity.

The operating income in the second quarter increased 10.5% to $13.7 million from $12.4 million in the year-ago quarter.

Aftermarket: Revenues in the segment improved a solid 41.8% year over year to $80.4 million in the second quarter, driven by higher spare part sales and maintenance, repair and overhaul activity.

The operating profit in the second quarter decreased 20.3% to $11.8 million.

Operational Highlights

Total operating costs and expenses rose 23.9% year over year to $1,362.6 million due to the higher cost of sales, increased SG&A expenses and elevated research and development expenses.

The company incurred an operating loss of $104.7 million in the second quarter compared with the year-ago quarter’s loss of $97.7 million.

Financial Position

As of Jun 30, 2022, SPR had $770.2 million of cash and cash equivalents compared with $1,478.6 million as of Dec 31, 2021.

Long-term debt as of Jun 30, 2022 totaled $3,424.8 million compared with $3,742.7 million at the end of 2021.

The cash outflow from operating activities was $331.7 million during the six months ended Jun 30, 2022 compared with $197.7 million a year ago.

Zacks Rank

Spirit AeroSystems has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Lockheed Martin Corporation LMT reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. The bottom line, however, declined 1.6% year over year.

The company’s net sales amounted to $15.45 billion, which missed the Zacks Consensus Estimate of $16.16 billion by 4.4%. The top line also declined 9.3% from the $17.03 billion reported in the year-ago quarter.

Hexcel Corporation HXL reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.

The company’s net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.

Teledyne Technologies Inc. TDY reported second-quarter 2022 adjusted earnings of $4.43 per share, which surpassed the Zacks Consensus Estimate of $4.38 by 1.1%. However, the bottom line declined 3.9% from the year-ago quarter’s $4.61 per share.

Total sales in the second quarter amounted to $1,355.8 million, which exceeded the Zacks Consensus Estimate of $1,352 million by 0.3%. The top line also improved 21% from the $1,121 million reported a year ago.


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