Spirit AeroSystems (SPR) Bullish Stance Reiterated at FBR on Solid Q1

FBR Capital analyst Patrick J. McCarthy reiterated an Outperform rating and $34 price target on Spirit AeroSystems (NYSE: SPR) following Q1 results, saying the results underscored strong demand for large commercial aircraft and solid operating performance from the company's more mature programs.

McCarthy comments, "Unlike last quarter, which was negatively affected as a result of large charges, this quarter got a nice boost in operating income, which increased to $194 million from $145 million in 1Q13 from favorable cumulative catch-up adjustments on the mature programs. Regarding the top line, Spirit's 1Q14 revenue was $1.7 billion, up 20% year over year and beating consensus expectations by $130 million. The top-line growth was a result of numerous factors, including higher production volumes and four additional workdays in the quarter. Backing out those extra days, year over year would have still been 13%, a significant increase from 1Q13. With these results, an operating margin increase, and a newfound focus on cash flow, we reiterate our Outperform rating and $34 price target."

The firm is increasing top-line expectations; the revenue forecast in their model is now $6.6 billion, up $100 million from their previous estimate. They are also increasing operating income and EPS projections to $709 million and $2.67, respectively. Their new operating income estimate marks a $140 million increase, while EPS estimate increased $0.19.

For an analyst ratings summary and ratings history on Spirit AeroSystems click here. For more ratings news on Spirit AeroSystems click here.

Shares of Spirit AeroSystems closed at $33.43 yesterday.

You May Also Be Interested In

• Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
• Boeing (BA) Cut To Baa3 From Baa2 By Moody's, Outlook Negative
• EQT Corp. (EQT) PT Lowered to $46 at Wolfe Research