Spirit AeroSystems (SPR) Q3 Earnings Miss, Backlog Slips Q/Q
Spirit AeroSystems Holdings, Inc. SPR reported third-quarter 2019 adjusted earnings of $1.38 per share, which missed the Zacks Consensus Estimate of $1.67 by 17.4%. Moreover, on a year-over-year basis, the bottom line declined 19% from $1.70 per share.
Barring one-time adjustments, the company reported GAAP earnings of $1.26 per share compared with $1.59 in the year-ago quarter.
Highlights of the Release
Total revenues of $1,920 million lagged the Zacks Consensus Estimate of $1,966 million by 2.3%. However, the top line rose 6% from $1,814 million on a year-over-year basis.
Backlog at the end of third-quarter 2019 was $44 billion, lower than $46 billion in the prior quarter.
Segment Performance
Fuselage Systems: Revenues at the segment grew 1.4% to $1,005.3 million from $991 million in third-quarter 2018. Higher production volumes of the Boeing 787 and Airbus A350 programs in addition to higher revenues generated from the Boeing 787 program drove the top line.
Propulsion Systems: The segment recorded revenues of $520.9 million in the reported quarter, up 17.7% from $442.4 million a year ago. The uptick can be attributed to a favorable model mix in the Boeing 737 program and higher production volumes of the Boeing 777 program.
Wing Systems: Revenues at the segment rose 3.3% to $391 million from $378.6 million in the prior-year quarter, primarily driven by higher production volumes of the Boeing 777 and 787 programs.
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
Spirit Aerosystems Holdings, Inc. price-consensus-eps-surprise-chart | Spirit Aerosystems Holdings, Inc. Quote
Financial Position
As of Sep 26, 2019, Spirit AeroSystems had $1,477.3 million in cash and cash equivalents compared with $773.6 million as of Dec 31, 2018.
As of Sep 26, 2019, long-term debt totaled $2,132.2 million compared with $1,864 million at the end of 2018.
Cash flow from operating activities increased to $718.6 million at the end of third-quarter 2019 from $567.4 million at the end of third-quarter 2018.
Capital expenditures summed $41 million during the third quarter, down from $62 million in the prior-year quarter.
Update on 737 MAX
Spirit AeroSystems continues to produce at a rate of 52 aircraft per month, per its agreement with Boeing.
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
Lockheed Martin Corp. LMT reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line also improved 10.1% from $5.14 in the year-ago quarter.
Textron Inc. TXT reported third-quarter 2019 earnings from continuing operations of 95 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 11.8%. The bottom line increased 55.7% from the year-ago quarter.
General Dynamics Corporation GD reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also improved 10.2% from the prior-year quarter’s $2.85.
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