Spirit AeroSystems Encounters Headwinds In Q1 As Boeing 737 Issues Take Toll
Portfolio Pulse from Akanksha Bakshi
Spirit AeroSystems Holdings Inc (NYSE:SPR) reported Q1 2024 results with a 19% Y/Y revenue increase to $1.703 billion, surpassing consensus estimates. Despite higher production activities and defense revenues, the company faced challenges including a significant operating loss and negative EPS due to Boeing 737 production disruptions and delivery delays. Spirit's backlog is approximately $49 billion, including Airbus and Boeing commercial platforms. The company withheld guidance amid Boeing acquisition talks and production uncertainties. Shares of SPR traded lower by 1.21%.
May 07, 2024 | 2:34 pm
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NEUTRAL IMPACT
Airbus is involved in commercial negotiations with Spirit AeroSystems, which withheld its guidance amid these talks and Boeing acquisition discussions.
The uncertainty surrounding Spirit AeroSystems' guidance due to Boeing acquisition talks and production schedules indirectly affects Airbus, though the immediate financial impact is less clear.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Boeing's schedule changes and production issues with the 737 MAX have negatively impacted Spirit AeroSystems' Q1 2024 performance.
Boeing's production adjustments and the ongoing quality audits following the Alaska Airlines incident have led to delivery delays and financial strain on suppliers like Spirit AeroSystems.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Spirit AeroSystems reported a 19% Y/Y revenue increase in Q1 2024 but faced significant losses due to Boeing 737 production issues. Shares fell 1.21%.
The negative EPS and operating loss, compounded by Boeing 737 production disruptions, directly impact SPR's financial health and investor sentiment, leading to a decrease in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100