Spirit AeroSystems Holdings Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Spirit AeroSystems Holdings (NYS: SPR) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Spirit AeroSystems Holdings beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped.

Margins dropped across the board.

Revenue details
Spirit AeroSystems Holdings booked revenue of $1.22 billion. The 18 analysts polled by S&P Capital IQ hoped for revenue of $1.13 billion. GAAP sales were 14% higher than the prior-year quarter's $1.07 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.42. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.42 for Q4 were 4.5% lower than the prior-year quarter's $0.44 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 12.5%, 660 basis points worse than the prior-year quarter. Operating margin was 8.4%, 540 basis points worse than the prior-year quarter. Net margin was 5.0%, 80 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $5.34 billion. The average EPS estimate is $2.19.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 302 members out of 318 rating the stock outperform, and 16 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Spirit AeroSystems Holdings a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spirit AeroSystems Holdings is outperform, with an average price target of $24.98.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Spirit AeroSystems Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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