Spirit AeroSystems Holdings, Inc. (NYSE:SPR) reported first-quarter 2018 earnings of $1.10 per share, which missed the Zacks Consensus Estimate of $1.35 by 18.5%. The bottom-line figure also came in lower by 6% than the year-ago quarter’s figure of $1.17.
Highlights of the Release
Total revenues of $1,736 million in the first quarter surpassed the Zacks Consensus Estimate of $1,703 million by 2%. The top line also rose 2% on a year-over-year basis.
Backlog at the end of first-quarter 2018 was $47 billion, flat with the prior-quarter’s figure.
Segment Performance
Fuselage Systems: Revenues at the segment grew 5% to $962.7 million from the prior-year figure of $916.9 million. Higher production deliveries of the 737 and Airbus A350 programs as well as increased defense work and non-recurring activities on certain Boeing programs drove the revenue upside.
Propulsion Systems: The segment recorded revenues of $394.5 million in the quarter, down 2.9% from $406.3 million a year ago. The downside can be attributed to lower production deliveries on the Boeing 777 program as well as lower revenues recognized on the Boeing 787 program.
Wing Systems: Revenues at the segment increased 2.2% to $377 million from $369 million in the prior-year quarter. The uptick was owing to higher wing deliveries on the Boeing 737 and Airbus A320 programs.
Financial Position
As of Mar 29, 2018, Spirit AeroSystems had $437.9 million in cash and cash equivalents compared with $423.3 as of Dec 31, 2017.
As of Mar 29, 2018, long-term debt (excluding current portion) was $1,112.6 million compared with $1,119.9 million at the end of 2017.
Cash flow from operating activities increased to $166.6 million at the end of first-quarter 2018 from $111.7 million at the end of first-quarter 2017.
Capital expenditures totaled $48 million in the reported quarter compared with $41 million in the year-ago quarter.
Guidance
Spirit AeroSystems reiterated financial guidance for 2018. The company continues to expect to generate earnings in the range of $6.25-$6.50 on revenues of $7.1-$7.2 billion.
Management also continues to expect free cash flow in the band of $550-$600 million for 2018.
Zacks Rank
Spirit AeroSystems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
L3 Technologies, Inc. (NYSE:LLL) posted first-quarter 2018 earnings of $2.34 per share from continuing operations, surpassing the Zacks Consensus Estimate of $1.99 by 2.2%.
Embraer SA (NYSE:ERJ) incurred a loss of 13 cents per share in first-quarter 2018, wider than the Zacks Consensus Estimate of a loss of a penny.
The Boeing Company (NYSE:BA) reported adjusted earnings of $3.64 per share in first-quarter 2018, beating the Zacks Consensus Estimate of $2.59 by 40.5%.
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Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report
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