Spirit AeroSystems Holdings, Inc. (NYSE:SPR) reported fourth-quarter 2019 adjusted earnings of 79 cents per share, which lagged the Zacks Consensus Estimate of $1.57 by 49.7%. The bottom line also plunged 57% from the year-ago quarter’s $1.85.
Barring one-time adjustments, the company reported GAAP earnings of $1.68 per share compared with $1.07 in the year-ago quarter.
For 2019, Spirit AeroSystems’ earnings came in at $5.54 per share, which declined 12% from the prior year’s $6.26.
Highlights of the Release
Total revenues of $1,959 million exceeded the Zacks Consensus Estimate of $1,926 million by 1.7%. Moreover, the top line rose 7% on a year-over-year basis.
Backlog at the end of fourth-quarter 2019 was $43 billion compared with $48 million at the end of fourth-quarter 2018.
For 2019, Spirit AeroSystems generated revenues of $7,863 million, which improved 9% from the prior year’s $7,222 million.
Segment Performance
Fuselage Systems: Revenues at the segment grew 1.7% to $1,034.5 million from $1017.4 million in fourth-quarter 2018. Higher production volumes of the Boeing (NYSE:BA) 787 and increased GCS&S activities drove the top line.
Operating margin for the fourth quarter of 2019 decreased to 5.8% compared with 15.6% during the same period in 2018.
Propulsion Systems: The segment recorded revenues of $532.3 million in the reported quarter, up 20.2% from $442.9 million a year ago. The uptick can be attributed to higher production volumes of the Boeing 737, 777 and Airbus A220 programs as well as a favorable model mix on the Boeing 737 program.
Operating margin for the fourth quarter of 2019 increased to 18.7% compared with 18% during the same period of 2018.
Wing Systems: Revenues at the segment rose 4.4% to $390.9 million from $374.4 million in the prior-year quarter. The uptick can be attributed to higher production volumes of the Boeing 787 and Airbus A350 programs.
Operating margin for the fourth quarter of 2019 decreased to 10% compared with 16.1% during the same period of 2018.
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
Operational Highlights
Total operating expenses rose 17.1% year over year to $1,863.6 million on account of higher cost of sales; increased selling, general and administrative expenses; and elevated research and development expenses.
The company’s operating income plunged 60.7% in the fourth quarter to $95.7 million from the year-ago quarter’s $243.6 million.
Financial Position
As of Dec 31, 2019, Spirit AeroSystems had $2,350.5 million in cash and cash equivalents compared with $773.6 million as of Dec 31, 2018.
At the end of 2019, long-term debt (excluding current portion) totaled $2,984.1 million compared with $1,864 million at the end of 2018.
Cash flow from operating activities increased to $922.7 million at the end of 2019 from $$769.9 million at the end of 2018.
Capital expenditures summed $232 million in 2019 compared with $271 million in the prior year.
Zacks Rank
Spirit AeroSystems has a Zacks Rank #5 (Strong Sell).
Recent Defense Releases
Teledyne Technologies Inc. (NYSE:TDY) , a Zacks Rank #3 (Hold) company, reported fourth-quarter 2019 adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 5.1%. The bottom-line figure came above the guided range of $2.71-$2.76 for the reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lockheed Martin Corp. (NYSE:LMT) , a Zacks Rank #3 company, reported fourth-quarter 2019 earnings of $5.29 per share, which surpassed the Zacks Consensus Estimate of $4.99 by 6%. The bottom line also improved 20.5% from $4.39 in the year-ago quarter.
General Dynamics Corporation’s (NYSE:GD) , a Zacks Rank #3 company, reported fourth-quarter earnings from continuing operations of $3.51 per share, which beat the Zacks Consensus Estimate of $3.46 by 1.45%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
General Dynamics Corporation (GD): Free Stock Analysis Report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Spirit Aerosystems Holdings, Inc. (SPR): Free Stock Analysis Report
Teledyne Technologies Incorporated (TDY): Free Stock Analysis Report
Original post
Zacks Investment Research