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Spirit AeroSystems' Q4 Earnings Beat Estimates, Up Y/Y

Spirit AeroSystems Holdings, Inc.SPR posted fourth-quarter 2015 adjusted earnings of 95 cents, beating the Zacks Consensus Estimate of 94 cents by 1.1%. Earnings were also higher than the year-ago figure of 87 cents by 9.2%.

On a GAAP basis, the company reported earnings of $1.01 per share in the reported quarter, as against a loss of 77 cents in the prior-year quarter. The difference between operating and GAAP results was due to an impact of deferred tax asset valuation allowance.

Full-year adjusted earnings came in at $3.92, beating the Zacks Consensus Estimate of $3.91 by 0.3%. The reported figure also grew 9.8% from the year-ago figure of $3.57. On a GAAP basis, the company reported earnings of $5.66 per share in 2015, compared with $2.53 a year ago.

Spirit Aerosystems Holdings Inc. (SPR) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Highlights of the Release

Total revenue of $1,609 million in the fourth quarter surpassed the Zacks Consensus Estimate of $1,582 million by 1.7%. The top line also grew 2.2% year over year.

Full-year revenues of $6,644 million decreased 2.3% but surpassed the Zacks Consensus Estimate of $6,617 million by 0.4%.

Backlog at the end of the quarter was $47 billion, registering a sequential increase of $1 billion.

Segment Performance

Fuselage Systems: Revenues at the segment increased 4.5% to $822.8 million from the prior-year figure of $787.6 million.

Propulsion Systems: The segment recorded revenues of $434.7 million in the reported quarter, up from $384.7 million.

Wing Systems: Revenues at this segment decreased 11.3% to $352.3 million.

Financial Position

As of Dec 31, 2015, Spirit AeroSystems had $957.3 million in cash and cash equivalents, compared with $377.9 million as of Dec 31, 2014.

Long-term debt (excluding current portion), as of Dec 31, 2015, was $1,097.6 million, compared with $1,144.1 million at the end of 2014.

Cash flow from operating activities increased significantly to $1289.7 million in the quarter from $361.6 million a year ago.

Capital expenditure was $143 million compared with $86 million in the year-ago period. Free cash flow was $177 million as against an outflow of $53 million in the prior-year period.

Guidance

Spirit AeroSystems expects 2016 revenues in the range of $6.6 billion to $6.7 billion.

The company expects earnings of $4.15−$4.35 per share. Additionally, management gave its free cash flow projection in the range of $350−$400 million and capital investment in the range of $225−$275 million.

Other Defense Releases

Rockwell Collins Inc. COL reported financial results for first-quarter fiscal 2016 ended Dec 31, 2015. The company's adjusted earnings per share of $1.21 surpassed the Zacks Consensus Estimate of 98 cents by 23.5%. Reported earnings also improved 10% from the prior-year adjusted profit of $1.10 per share.

Raytheon Company RTN reported fourth-quarter 2015 adjusted earnings from continuing operations of $1.93 per share, beating the Zacks Consensus Estimate of $1.79 by 7.8%. Also, earnings increased 3.8% from the year-ago figure of $1.86.

Triumph Group Inc. TGI reported third-quarter fiscal 2016 (ended Dec 31, 2015) adjusted earnings from continuing operations of $1.39 per share, in line with the Zacks Consensus Estimate. Reported earnings, however, fell 2.1% from $1.42 a year ago.

Zacks Rank

Spirit AeroSystems currently has a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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