Spirit AeroSystems (NYSE:SPR) saw its shares tumble 4.6% in premarket trading Tuesday, after the company reported a much worse-than-expected quarterly loss.
In particular, the firm posted a Q1 loss per share of $3.93, significantly missing analysts' estimate of a $0.57 loss. Quarterly revenue reached $1.7 billion, surpassing the consensus estimate of $1.62 billion.
Commercial revenue totaled $1.36 billion, marking an 18% increase year-over-year and above the estimated $1.28 billion. However, the commercial segment's operating margin fell to -35.8%, compared to -4% last year, well below the expected 5.48%.
For 2024, Spirit AeroSystems said it will withhold guidance until there is more clarity regarding acquisition talks with Boeing (NYSE:BA), the 737 MAX production timeline, and ongoing negotiations with Airbus.
"The first quarter was characterized by several events, one of great significance was the partnership with Boeing to make improvements to the safety and quality of our production systems. We collaborated with Boeing to align 737 fuselage product inspection as close as possible to where the work is performed at our factories in Wichita,” said Pat Shanahan, President and CEO of Spirit AeroSystems.
“This is a significant accomplishment that we believe will enhance quality, eliminate rework, and benefit the entire production system between our companies.”