Spirit AeroSystems Stock Falls On Expecting Incremental Forward Loss On Boeing Fuselage Issue - Spirit AeroSystems Hldgs (NYSE:SPR)

Spirit AeroSystems Holdings, Inc. SPR reported second-quarter revenue growth of 55% year-over-year to $1 billion, beating the consensus of $958.95 million.
Sales by segments: Fuselage Systems $492.2 million (+50.5% Y/Y), Propulsion Systems $241.9 million (+42.6% Y/Y), Wing Systems $259.3 million (+111.7% Y/Y).
The revenue increase reflects higher production deliveries on the Boeing Co BA 737 and Airbus SE EADSY A320 programs and increased revenue from the recently acquired A220 wing and Bombardier Inc BDRAF programs.
Spirit AeroSystems delivered 243 shipsets, compared to 159 in Q2 2020, and had delivered 35 737 shipsets versus 19 last year and 29 last quarter.
Adjusted loss per share was $(0.31), versus $(2.28) in 2Q20, beating consensus for a loss of $(0.72).
The operating loss narrowed to $(97.7) million from $(367) million a year ago.
The company's backlog at the end of the quarter was ~$34 billion.
Spirit AeroSystems cash used in operation year-to-date was $198 million, compared to $560 million used a year ago. Free cash flow was $(251) million.
"As a result of our ongoing engagement with Boeing on the 787 program, we identified an additional issue in the forward section of the fuselage. We continue to coordinate with Boeing to ensure that we are performing all necessary rework," said CEO Tom Gentile.
FY21 Outlook: Spirit AeroSystems expects cash used in operations to be $(50) million - $(150) million, and free cash flow to be $(200) million - $(300) million.
Based on the preliminary assessment of the latest 787 program demand received from Boeing on August 2, 2021, the company expects to incur an incremental forward loss of $40 million - $60 million in the 3Q21 due to the impact of reduced production volumes and the corresponding amount of fixed overhead absorption applied to lower deliveries.
Price Action: SPR shares are down 6.05% at $40.625 on the last check Wednesday.

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