- Spirit Aero reported an adjusted loss per share of $3.03, significantly worse than the estimated loss of $0.38 per share.
- Revenue came in at $1.47 billion, which is a 2.2% increase year-over-year but below the estimated $1.67 billion.
- Commercial revenue was $1.14 billion, only a 0.3% increase year-over-year, missing the estimated $1.34 billion.
- The Defense & Space segment reported revenue of $231.3 million, a 12% increase year-over-year, slightly missing the $233.6 million estimate.
- Aftermarket segment revenue was $99.5 million, up 2.8% year-over-year, but below the estimated $110 million.
- Spirit delivered 332 shipsets, consistent with the previous year.
- Boeing Shipset deliveries decreased by 19% year-over-year to 88 units.
- B737 Shipset deliveries fell by 23% year-over-year.
- Total segment operating loss was $245.9 million compared to a $54.4 million loss year-over-year.
- Commercial segment saw a significant operating loss of $299.4 million, a stark contrast to the estimated profit of $67.3 million.
- The Defense & Space segment recorded an operating income of $44.8 million, much higher than the previous year’s $9.8 million, surpassing the $26.2 million estimate.
- Aftermarket segment operating income dropped by 51% year-over-year to $8.7 million, missing the estimated $22.8 million.
- Commercial segment operating margin was negative at -26.3%, against an estimated 3.53% gain.
- The Defense & Space segment’s operating margin improved significantly to 19.4%, beating the estimated 10.8%.
- Aftermarket segment operating margin decreased to 8.7%, short of the estimated 20.8%.
- Spirit Aero is on track to be acquired by Boeing by mid-2025, though regulatory reviews are ongoing.
- Recent developments have lowered projected revenue and cash flows due to changes in production and delivery processes.
- Boeing’s advance of $425 million remains unpaid as of the end of the third quarter.
- The company plans a 21-day furlough for about 700 employees on the 767 and 777 programs starting October 28 due to inventory issues.
- Potential layoffs and additional furloughs may occur if the Boeing strike continues beyond November.
- Currently, the stock has 1 buy and 16 hold ratings, with no sell recommendations.
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Spirit Aerosystems Holdings, Inc on Smartkarma
Analysts on Smartkarma are closely following the latest developments regarding Spirit Aerosystems Holdings, Inc, particularly in light of Boeing’s recent announcement of a $4.7 billion acquisition offer. The deal, which values Spirit Aerosystems at $37.25 per share, is expected to be an all-stock transaction with a 3.9% dilution for Boeing shareholders. Jesus Rodriguez Aguilar, a prominent analyst on the platform, shares insights on the acquisition, noting that the offer price represents a 6.4% premium above the consensus price target median of $35.
With a lean towards a bullish sentiment, analysts view the valuation at 10.1x EV/2025 EBITDA as reasonable and reflective of some control premium. This acquisition has sparked interest in the market, with a focus on the potential synergies and impact on both companies. Investors are keeping a keen eye on the evolving situation between Boeing and Spirit Aerosystems, as the all-stock deal continues to unfold.
A look at Spirit Aerosystems Holdings, Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
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 the Smartkarma Smart Scores, Spirit Aerosystems Holdings, Inc. shows a promising long-term outlook. With a strong resilience score of 5, the company is well-equipped to weather market fluctuations and economic uncertainties. This indicates its ability to withstand challenges and maintain stability over time.
Additionally, Spirit Aerosystems Holdings, Inc. has received a growth score of 3, suggesting potential for expansion and development in the future. This, coupled with a momentum score of 3, indicates a positive trend in the company’s performance. While the value score is at 0 and dividend score at 1, the overall outlook remains favorable for Spirit Aerosystems Holdings, Inc. as it continues to design and manufacture aerostructures for various aircraft, positioning itself as a key player in the industry.
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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