Why Spirit AeroSystems' Shares Soared 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 Spirit AeroSystems jumped 10% today after the company reported better than expected earnings.
So what: Third-quarter revenue rose 10% to $1.5 billion and the company swung to a profit of $93.7 million, or $0.65 per share, from a loss a year ago. Analysts were only expecting earnings of $0.60 per share.
Backlog also rose to $38 billion from $34 billion a year ago.
Now what: Spirit AeroSystems is trying to sell a facility in Oklahoma; management said it's narrowed potential buyers but that the sale process will extend into next year. All in all, the report was a positive step for Spirit, which has a tremendous opportunity in a growing commercial aircraft market and now appears to have costs under control. I think the stock has a long way to run, especially when you consider the company's massive backlog.
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The article Why Spirit AeroSystems' Shares Soared Today originally appeared on Fool.com.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends 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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