Spirit AeroSystems Holdings, Inc. (NYSE:SPR) posted second-quarter 2016 adjusted earnings of $1.21 per share, beating the Zacks Consensus Estimate of $1.05 by 15.2%. Earnings were also higher than the year-ago figure of $1.09 by 11%.
On a GAAP basis, the company reported earnings of 35 cents per share in the reported quarter, compared with $1.11 per share in the prior-year quarter. The difference between operating and GAAP results was due to the impact of the Airbus agreement, CEO retirement, and debt refinancing.
Highlights of the Release
Total revenue of $1,829.9 million in the second quarter surpassed the Zacks Consensus Estimate of $1,660 million by 10.2%. Revenues also improved 7.7% year over year.
Backlog at the end of the quarter was $47 billion, registering a sequential increase of $1 billion.
Segment Performance
Fuselage Systems: Revenues at the segment increased 3.1% to $915.4 million from the prior-year figure of $887.6 million.
Propulsion Systems: The segment recorded revenues of $481.7 million in the reported quarter, up from $440.5 million a year ago.
Wing Systems: Revenues at this segment jumped 15.4% to $424.2 million.
Financial Position
As of Jun 30, 2016, Spirit AeroSystems had $800.5 million in cash and cash equivalents, compared with $957.3 million as of Dec 31, 2015.
Long-term debt (excluding current portion), as of Jun 30, 2016, was $1,071.6 million, compared with $1,085.3 million at the end of 2015.
Cash flow from operating activities decreased significantly to $308.8 million in the first half of 2016 from $729 million a year ago.
Capital expenditure was $54 million in the quarter compared with $75 million in the year-ago period.
Guidance
Spirit AeroSystems maintained its revenue forecast for 2016 in the range of $6.6 billion to $6.7 billion. However, it revised its EPS guidance to the range of $3.45 - $3.65 from $4.15 - $4.35 expected earlier.
Management now expects free cash flow in the range of $ 350 - $400 million, up from the prior expectation of $325 - $375 million.
Other Defense Releases
Rockwell Collins Inc. (NYSE:COL) reported financial results for third-quarter fiscal 2016 ended Jun 30, 2016. The company’s adjusted earnings per share of $1.63 surpassed the Zacks Consensus Estimate of $1.59 by 2.5%. Reported earnings also improved 22.6% from $1.33 per share a year ago.
Raytheon Company (NYSE:RTN) reported second-quarter 2016 adjusted earnings from continuing operations of $1.75 per share, beating the Zacks Consensus Estimate of $1.70 by 2.9%. Earnings also increased 6.1% from the year-ago figure of $1.65.
B/E Aerospace Inc. (NASDAQ:BEAV) reported second-quarter 2016 adjusted earnings of 84 cents per share, beating the Zacks Consensus Estimate of 82 cents by 2.44%.
Zacks Rank
Spirit AeroSystems currently has a Zacks Rank #3 (Hold).
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