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Spirit AeroSystems (SPR) Q3 Loss Narrows, Revenues Rise Y/Y

Spirit AeroSystems Holdings, Inc. SPR reported a third-quarter 2023 adjusted loss of $1.42 per share, narrower than the Zacks Consensus Estimate of a loss of $1.56 per share. However, the loss widened from the year-ago quarter’s reported loss of $1.21 cents per share.

Barring one-time adjustments, Spirit AeroSystems recorded a GAAP loss of $1.94 per share compared with a loss of $1.22 in the prior-year period.

Highlights of the Release

Total revenues of $1,439 million missed the Zacks Consensus Estimate of $1,481 million by 0.2%. However, the top line rose 13% on a year-over-year basis, driven by higher production deliveries on most Commercial programs and higher Defense and Space and Aftermarket revenues.

The company’s backlog at the end of the third quarter totaled $42.2 billion, up from the prior quarter’s level of $40.5 billion.

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

Segmental Performance

Commercial Segment: Revenues in the segment increased 9.8% year over year to $1,136.4 million. The upside was due to higher production across most programs. The operating loss widened to $82.1 million from the operating profit of $45 million in the year-ago period.

Defense & Space: The segment recorded revenues of $205.7 million, up 27.2% year over year, driven by increased activity on development programs and higher production on the KC-46 Tanker program.

The operating income decreased 46.7% to $9.8 million from $18.4 million in the prior-year quarter.

Aftermarket: The top line improved 21% year over year to $96.8 million, driven by higher spare part sales.

The operating profit decreased 8.2% year over year to $17.9 million.

Operational Highlights

Total operating costs and expenses rose 23.6% year over year to $1,572.6 million due to the higher cost of sales and restructuring costs.

SPR’s operating loss totaled $133.7 million compared to the operating profit of $4.5 million in the prior-year period. This increase was mainly due to higher changes in estimates and excess capacity costs recognized in the third quarter of 2023.

Financial Position

As of Sep 28, 2023, Spirit AeroSystems had $374.1 million in cash and cash equivalents compared with $658.6 million as of Dec 31, 2022.

The long-term debt as of Sep 28, 2023 totaled $3,811 million compared with $3,814.9 million as of Dec 31, 2022.

Cash outflow from operating activities amounted to $339.5 million during the first nine months of 2023 compared with $367.4 million a year ago.

Zacks Rank

Spirit AeroSystems currently 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

Hexcel Corporation HXL reported third-quarter 2023 adjusted earnings of 38 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 9.5%. However, the bottom line improved 15.2% from the year-ago earnings of 33 cents per share.

In the third quarter, net sales totaled $420 million, which missed the Zacks Consensus Estimate of $431 million by 2.6%. However, the top line witnessed an improvement of 15% from the year-ago quarter’s $365 million.

Lockheed Martin Corporation LMT reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. However, the bottom line deteriorated 1.5% from the year-ago quarter's recorded figure.

Net sales were $16.88 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line rose 1.8% from $16.58 billion reported in the year-ago quarter.

AAR Corp. AIR reported first-quarter fiscal 2024 adjusted earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 6.9%. Earnings surged 27.9% from the year-ago quarter.

In the quarter under review, AAR generated net sales worth $549.7 million. The reported figure surpassed the Zacks Consensus Estimate by 8.7% and increased 23.2% from $446.3 million recorded in the year-ago quarter.

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AAR Corp. (AIR) : Free Stock Analysis Report

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

Hexcel Corporation (HXL) : Free Stock Analysis Report

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