Spirit AeroSystems Rebounds With Q4 Topline Beat But Guidance Grounded Amid Boeing Woes
Portfolio Pulse from Lekha Gupta
Spirit AeroSystems Holdings Inc (NYSE:SPR) reported a 37% Y/Y revenue growth for Q4 FY23, reaching $1.81 billion and surpassing the consensus of $1.74 billion. This growth was attributed to higher production deliveries across most Commercial programs, increased Defense and Space and Aftermarket revenue, and favorable adjustments from a Boeing Company (NYSE:BA) agreement. Despite the revenue beat, adjusted EPS was $0.48, missing the consensus of $0.87. Spirit's backlog stood at ~$49 billion, including Airbus SE (OTC:EADSY) work packages. The company refrained from providing guidance due to uncertainties with the 737 MAX production rate and Airbus price negotiations.
February 06, 2024 | 3:25 pm
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NEUTRAL IMPACT
Boeing's agreement with Spirit AeroSystems contributed to SPR's Q4 revenue growth, but ongoing uncertainties with the 737 MAX may impact future performance.
While the agreement with Spirit positively impacted Q4 revenue, the ongoing 737 MAX issues and production rate uncertainties could affect Boeing's short-term stock performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
Spirit AeroSystems' backlog includes work packages on Airbus platforms, but price negotiations with Airbus are pending, creating uncertainty.
The inclusion of Airbus work packages in Spirit's backlog is positive, but the unresolved price negotiations could introduce uncertainty affecting EADSY's short-term stock performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Spirit AeroSystems reported a significant Q4 revenue growth and a substantial backlog, but missed EPS estimates and withheld future guidance.
The mixed earnings report and lack of future guidance due to uncertainties with key customers Boeing and Airbus could lead to short-term volatility in SPR's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100