Spirit Aerosystems Reports Significant Quarterly Loss
Spirit Aerosystems (SPR) revealed a quarterly loss of $3.03 per share, much worse than the Zacks Consensus Estimate of a loss of $0.16. This marks a decline from a loss of $1.42 per share in the same quarter last year, with all figures adjusted for one-time items.
This latest report shows an earnings surprise of -1,793.75%. In the previous quarter, expectations were for a loss of $0.98 per share; the company actually reported a loss of $2.73, resulting in a surprise of -178.57%.
Over the past year, Spirit Aerosystems has consistently failed to meet consensus earnings per share (EPS) estimates. In the Aerospace – Defense Equipment industry, the company reported revenues of $1.47 billion for the quarter ending September 2024—a 19.55% miss compared to the Zacks Consensus Estimate. A year earlier, the revenues were $1.44 billion. The company has only exceeded revenue estimates once in the last four quarters.
The future trajectory of the stock is likely to hinge on management’s insights during the upcoming earnings call regarding these results and future projections.
Year-to-date, Spirit Aerosystems shares have gained about 3.1%, while the S&P 500 index has risen by 22.7%.
What Lies Ahead for Spirit Aerosystems?
Despite Spirit Aerosystems’ underperformance this year, investors are left wondering about the stock’s future. While no definitive answers exist, analyzing the company’s earnings outlook can provide valuable insights. This includes current consensus earnings expectations for future quarters and any changes that might influence them.
Research indicates a strong link between short-term stock movements and earnings estimate revisions. Investors have the option to track these revisions independently or utilize a reliable rating tool like the Zacks Rank, known for its success in forecasting stock movements based on earnings updates.
Leading up to this earnings release, estimate revisions for Spirit Aerosystems have been unfavorable. As a result, the stock currently holds a Zacks Rank of #5 (Strong Sell), suggesting it may underperform in the near term. Observing forthcoming changes in earnings estimates for upcoming quarters will be crucial; the current consensus anticipates an EPS of $0.53 on revenues of $1.98 billion for the next quarter, and a loss of -$4.67 on revenues of $6.82 billion for the current fiscal year.
Additionally, the overarching outlook for the Aerospace – Defense Equipment industry can significantly influence the stock’s performance. Currently, this industry ranks in the top 39% of over 250 Zacks industries. Historical data shows that the top 50% of Zacks-ranked industries outperform the bottom half by more than a 2 to 1 ratio.
Astronics Corporation (ATRO), a competitor in the same sector, has yet to report its earnings for the quarter ended September 2024. It is projected to achieve earnings of $0.18 per share, reflecting a substantial year-over-year increase of +200%. Additionally, Astronics’ revenues are anticipated to reach $200.59 million, up 23.1% from a year prior.
Investing Considerations for Spirit Aerosystems Holdings, Inc. (SPR)
For those considering an investment in Spirit Aerosystems Holdings, Inc. (SPR), it’s worth exploring other stocks that may present better opportunities in the near future. Zacks Investment Research offers a report detailing the 7 best stocks to buy, which can serve as a helpful resource.
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