Spirit AeroSystems (SPR) Q2 Earnings: Stock To Surprise?
Zacks Investment Research | Jul 28, 2016 09:18PM ET
Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is set to release second-quarter 2016 results before the opening bell on Aug 3. In the preceding quarter, Spirit AeroSystems delivered a positive earnings surprise of 21.7%. Let’s see how things are shaping up prior to this announcement.
Factors at Play
Growing worldwide demand for commercial airplanes is expected to boost for the sales of large aerostructures and components that are supplied by Spirit AeroSystems. The company has a number of long-term contracts with industry bellwethers like The Boeing Company (NYSE:BA) and Airbus Group (PA:AIR) SE (OTC:EADSY) , which should help keep its revenue stream steady.
Meanwhile, Spirit AeroSystems is quite active in the defense market and is looking to begin production of new models. This should open up new avenues of growth for the company in this space.
Moreover, Spirit AeroSystems has been regularly returning cash to its shareholders in the form of share repurchases since 2014. It has plans to repurchase additional shares this year. Such investor-friendly initiatives will help retain investor interest in the stock.
For 2016, the company expects earnings in the range of $4.15–$4.35 per share on sales of $6.6 billion to $6.7 billion.
For the second quarter, the Zacks Consensus Estimate for earnings reflects a 3.9% year-over-year decline, while sales are anticipated to be down 2% to $1.66 billion.
SPIRIT AEROSYS Price and EPS Surprise/h3
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