Spirit AeroSystems (SPR) Reports Q4 Loss, Revenues Rise Y/Y
Spirit AeroSystems Holdings, Inc. SPR reported a fourth-quarter 2022 adjusted loss of $1.46 per share, wider than the Zacks Consensus Estimate of a loss of 31 cents. The bottom line also widened significantly from the year-ago quarter’s loss of 84 cents per share.
Barring one-time adjustments, Spirit AeroSystems reported a GAAP loss of $2.32 per share compared with a loss of $1.15 in the year-ago quarter. For the full-year 2022, SPR reported an adjusted loss of $3.46 per share, wider than the Zacks Consensus Estimate of a loss of $1.63 per share.
Highlights of the Release
Total revenues of $1,320 million lagged the Zacks Consensus Estimate of $1,378 million by 4.2%. However, the top line rose 23% on a year-over-year basis, driven by the higher production deliveries of the Boeing 737 and increased Defense and Space revenues.
For the full-year 2022, total revenues came in at $5.03 billion, missing the Zacks Consensus Estimate of $5.09 billion by 1.2%. However, net sales increased 27% year over year. The year-over-year rise was primarily due to higher production deliveries on the Boeing 737 and Airbus A320 and A220 programs and increased Aftermarket and Defense and Space revenues.
The backlog at the end of the fourth quarter of 2022 was $37 billion compared with $35 billion at the end of 2021.
Spirit Aerosystems Holdings, Inc. Price, Consensus and EPS Surprise
Spirit Aerosystems Holdings, Inc. price-consensus-eps-surprise-chart | Spirit Aerosystems Holdings, Inc. Quote
Segmental Performance
Commercial Segment: Revenues in the segment increased 26% year over year to $1,064 million in the fourth quarter, driven by higher production revenues on the Boeing 737, 777 and Bombardier business jets programs. The operating loss widened to $79.4 million from an operating loss of $20.2 million in the year-ago quarter.
Defense & Space: The segment recorded revenues of $183.2 million in the reported quarter, up 20.5% year over year. The upside can be attributed to higher development activity.
The operating income in the fourth quarter increased 72.5% to $20.7 million from $12 million in the year-ago quarter.
Aftermarket: Revenues in the segment declined by 1.2% year over year to $72.9 million in the fourth quarter. The operating profit in the fourth quarter decreased 45.2% to $9.2 million.
Operational Highlights
Total operating costs and expenses rose 26.9% year over year to $1,458.9 million due to the higher cost of sales and increased SG&A expenses.
SPR’s operating loss came in at $139 million in the fourth quarter compared with the year-ago quarter’s loss of $79 million. The increase in the operating loss was primarily due to the absence of income related to the Aviation Manufacturing Jobs Protection Program, which was recognized in the fourth quarter of 2021.
Financial Position
As of Dec 31, 2022, Spirit AeroSystems had $658.6 million in cash and cash equivalents compared with $1,478.6 million as of Dec 31, 2021.
The long-term debt as of Dec 31, 2022 totaled $3,814.9 million compared with $3,742.7 million at the end of 2021.
The cash outflow from operating activities was $395 million in 2022 compared with the cash outflow of $63 million a year ago.
Zacks Rank
Spirit AeroSystems has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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