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Spirit AeroSystems (SPR) Q1 Loss Widens, Revenues Rise Y/Y

Spirit AeroSystems Holdings, Inc. SPR reported a first-quarter 2024 adjusted loss of $3.93 per share, which came in much wider than the Zacks Consensus Estimate of a loss of 44 cents per share. The loss also widened from the year-ago quarter’s reported loss of $1.69 per share.

Barring one-time adjustments, Spirit AeroSystems recorded a GAAP loss of $5.31 per share compared with a loss of $2.68 in the prior-year period.

Highlights of the Release

Total revenues of $1.70 billion lagged the Zacks Consensus Estimate of $1.73 billion by 1.7%. However, the top line rose 19% on a year-over-year basis, driven by higher production activities of the company’s commercial programs as well as higher Defense and Space revenues.

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

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Spirit AeroSystems’ backlog at the end of the first quarter totaled $49 billion, up from the prior quarter’s $37 billion.

Segmental Performance

Commercial Segment: Revenues in the segment increased 18.1% year over year to $1.36 billion. The upside was driven by higher production across most of its programs.

The segment’s operating loss was $484.9 million compared with the operating loss of $45.5 million in the year-ago period. The deterioration can be attributed to higher changes in estimates as well as the results of the changes implemented in the product verification process in March 2024.

Defense & Space: The segment recorded revenues of $250.8 million, up 33.1% year over year, driven by increased activity of development and classified programs as well as the Sikorsky CH-53K and FLRAA programs.

The unit’s operating income increased 67.7% to $32.2 million from $19.2 million in the prior-year quarter, driven by higher activities of classified programs.

Aftermarket: This segment’s top line improved 1.5% year over year to $95.9 million, driven by higher spare part sales.

The segment’s operating profit decreased 10.4% year over year to $17.2 million owing to lower maintenance, repair and overhaul activity.

Operational Highlights

Total operating costs and expenses rose 46.1% year over year to $2.23 billion due to the higher cost of sales as well as selling, general and administrative expenses.

SPR’s operating loss in the first quarter of 2024 totaled $527.6 million compared with the operating loss of $95.1 million in the prior-year quarter. This deterioration was mainly due to unfavorable changes in estimates.

Financial Position

As of Mar 28, 2024, Spirit AeroSystems had $352 million in cash and cash equivalents compared with $823.5 million as of Dec 31, 2023.

The long-term debt as of Mar 28, 2024 totaled $3.99 billion compared with $4.02 billion as of Dec 31, 2023.

Cash outflow from operating activities amounted to $415.6 million during the first quarter of 2024 compared with cash outflow of $46.2 million recorded a year ago.

Zacks Rank

Spirit AeroSystems currently carries 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

RTX Corporation’s RTX first-quarter 2024 adjusted earnings per share of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.

RTX’s first-quarter net sales were $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.

Lockheed Martin Corporation LMT reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. However, the bottom line declined 1.6% from the year-ago quarter's recorded figure of $6.43.

Its net sales were $17.20 billion, which surpassed the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported in the year-ago quarter.

Hexcel Corporation HXL reported first-quarter 2024 adjusted earnings of 44 cents per share, which came in line with the Zacks Consensus Estimate.

In the first quarter, the company’s net sales totaled $472.3 million, which missed the Zacks Consensus Estimate of $475 million by 0.6%. However, the top line witnessed an improvement of 3.2% from the year-ago quarter’s reported figure of $457.7 million.

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RTX Corporation (RTX) : Free Stock Analysis Report

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