Yahoo Finance Analysts Expect Breakeven For Spirit AeroSystems Holdings, Inc. (NYSE:SPR) Before Long
With the business potentially at an important milestone, we thought we'd take a closer look at Spirit AeroSystems Holdings, Inc.'s (NYSE:SPR) future prospects. Spirit AeroSystems Holdings, Inc. engages in the design, engineering, manufacture, and marketing of commercial aerostructures worldwide. With the latest financial year loss of US$616m and a trailing-twelve-month loss of US$952m, the US$3.4b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Spirit AeroSystems Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Spirit AeroSystems Holdings
According to the 19 industry analysts covering Spirit AeroSystems Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$170m in 2025. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 76%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Spirit AeroSystems Holdings' upcoming projects, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Spirit AeroSystems Holdings is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of Spirit AeroSystems Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Spirit AeroSystems Holdings, take a look at Spirit AeroSystems Holdings' company page on Simply Wall St. We've also put together a list of key aspects you should look at:
Valuation: What is Spirit AeroSystems Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Spirit AeroSystems Holdings is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Spirit AeroSystems Holdings’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
