Why Spirit AeroSystems' Shares Crash Landed Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of aviation industry supplier Spirit AeroSystems (NYS: SPR) fell 30% today after the company announced major charges.
So what: The company will take charges of $590 million in the third quarter because of setbacks in a number of projects. It also said that it settled with its insurance company over storm damage for $235 million, which is less than the $400 million it previously expected.
Now what: Complex projects were blamed for the charges and there seems to only be questions going forward. Spirit has been trying to expand its customer base and new projects, yet new customers are proving to have led to more costs than expected for the company. I don't see any reason to buy the stock until these issues get worked out and the company is back on solid footing again.
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The article Why Spirit AeroSystems' Shares Crash Landed Today originally appeared on Fool.com.Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.