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Spirit AeroSystems Holdings Inc Class A SPR

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Spirit AeroSystems Improved Its Operations by Cutting Costs in the Third Quarter

Burkett Huey, CFA Equity Analyst

Analyst Note

| Burkett Huey, CFA |

No-moat rated Spirit AeroSystems reported a difficult third quarter as the company continues to cut costs dramatically to adjust to the materially smaller market for commercial aircraft. The company outperformed our expectations on cost and slightly underperformed our expectations on revenue. We are decreasing our fair value estimate to $33 from $33.50 due to greater near-term difficulties in the widebody market.

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Company Profile

Business Description

Spirit AeroSystems designs and manufactures aerostructures, particularly fuselages, for commercial and military aircraft. The company was spun out of Boeing in 2005, and the firm is the largest independent supplier of aerostructures. Boeing and Airbus are the firms and its primary customers, Boeing composes roughly 80% of annual revenue and Airbus composes roughly 15% of revenue. The company is highly exposed to Boeing’s 737 program, which generally accounts for about half of the firm’s revenue.

Contact
3801 South Oliver Street
Wichita, KS, 67210
T +1 316 526-9000
Sector Industrials
Industry Aerospace & Defense
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 18,200

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