Why Is Spirit Aerosystems (SPR) Down 0.9% Since Last Earnings Report?

Core Viewpoint - Spirit AeroSystems reported a significant widening of losses in Q3 2024, with adjusted losses of $3.03 per share, far exceeding the consensus estimate of a loss of $0.16 per share, and a notable increase from the previous year's loss of $1.42 per share [2][3] Financial Performance - Total revenues for Q3 2024 were $1.47 billion, missing the Zacks Consensus Estimate of $1.83 billion by 19.6%, but showing a year-over-year increase of 2.2% driven by higher production activities in commercial programs and increased Defense and Space revenues [4] - The operating loss for the third quarter was $350.1 million, compared to a loss of $133.7 million in the prior-year quarter, primarily due to unfavorable changes in estimates [9] Segment Performance - Commercial Segment: Revenues increased by 0.3% year over year to $1.14 billion, but the operating loss widened to $299.4 million from $82.1 million in the previous year due to higher changes in estimates [5] - Defense & Space Segment: Revenues rose by 12.4% year over year to $231.3 million, with operating income increasing by 357.1% to $44.8 million, driven by activities in the Sikorsky CH-53K program and non-recurring revenues from the FLRAA program [6][7] - Aftermarket Segment: Revenues improved by 2.8% year over year to $99.5 million, but operating profit decreased by 51.4% to $8.7 million due to a less favorable sales mix [7][8] Operational Highlights - Total operating costs and expenses increased by 15.8% year over year to $1.82 billion, influenced by higher costs of sales and increased selling, general, and administrative expenses [9] Financial Position - As of September 26, 2024, Spirit AeroSystems had cash and cash equivalents of $217.6 million, down from $823.5 million at the end of 2023 [11] - Long-term debt decreased slightly to $3.98 billion from $4.02 billion as of December 31, 2023, while cash outflow from operating activities rose significantly to $1.26 billion from $0.34 billion year-over-year [12] Market Sentiment - There has been a downward trend in earnings estimates, with a significant shift of -389.5% in consensus estimates over the past month, indicating a negative outlook for the stock [13][14] - Spirit Aerosystems currently holds a Zacks Rank of 5 (Strong Sell), suggesting expectations of below-average returns in the coming months [16]