Spirit Aero 1Q Adjusted Loss per Share $3.93: This was a significantly higher loss than the estimated 54c loss per share and a greater loss than last year’s 1Q loss of $1.69 per share.
Revenues have increased: Spirit Aero’s revenues hit $1.7 billion, marking a 19% increase year-on-year and surpassing the estimate of $1.58 billion.
Reduced Shipsets: However, Shipsets delivered were down by 11% compared to last year, with a recorded figure of 307.
Commercial segment struggling: The commercial sector faced an operating loss of $484.9 million, far higher than the estimated profit of $75.9 million and last year’s loss of $45.5 million. The sector’s operating margin stands at -35.8% against last year’s -4% and an estimated 5.48%.
Defense & Space Segment witnessing growth: This segment displayed an impressive 33% revenue increase with an operating income growth of 68%. Its operating margin also increased from 10.2% to 12.8%, surpassing the estimate of 9.57%.
Aftermarket segment revenue slightly up: With a modest increase of 1.5% from last year, Aftermarket segment’s operating income shrunk by 10%, and its operating margin fell from 20.3% to 17.9% against an estimate of 21%.
Currently under negotiation with Boeing: Spirit Aero is discussing potential acquisition terms with Boeing. Further insights into acquisitions, 737 MAX delivery and production timing, and negotiations with Airbus, remain undisclosed.
Anticipated forward loss in Q2: Due to a production fall and an inability to decrease variable costs in a timely manner, Spirit Aero predicts a forward loss of $50-$60 million in 2024’s second quarter.
Impact of Boeing’s schedule changes and investigation: Spirit Aero’s first quarter was majorly impacted by alterations in Boeing’s schedule in March, and the ensuing quality audits from the Alaska Airlines incident.
Delivery delays and undelivered units: Delays in delivering to Boeing resulted in undelivered units being stored in Wichita, Kansas, leading to an increase in inventory, contract assets, and lower operational cash flows.
31 aircraft to be produced monthly: Spirit Aero’s current production rate stands at 31 Boeing 737 aircraft per month, expected to continue till the year end.
A look at Spirit Aerosystems Holdings, Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Spirit Aerosystems Holdings, Inc shows a promising long-term outlook. With a Growth score of 4 and Resilience score of 5, the company is poised for positive expansion and has demonstrated a strong ability to weather market challenges. Momentum, also rated at 4, indicates the company’s current market trend is favorable. Although the Value score is rated at 0 and Dividend at 1, the focus on growth and resilience suggests a strategic approach to long-term sustainability.
Spirit Aerosystems Holdings, Inc, as a holding company, specializes in designing and manufacturing aerostructures for various types of aircraft. They are known for producing fuselages, propulsion systems, and wing systems for both commercial and military aircraft. With a solid growth outlook, strong resilience, and positive market momentum, Spirit Aerosystems Holdings, Inc seems well-positioned to navigate future challenges and capitalize on opportunities in the aerospace sector.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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