Spirit AeroSystems (NYSE:SPR) reported its latest quarterly earnings on Tuesday, sending its shares more than 2% higher, but the company did not provide guidance due to uncertainty on the timing of 737 MAX production rate increases.
The company reported fourth-quarter earnings of $0.48, $0.88 better than the analyst estimate of a loss of ($0.40). Revenue for the quarter came in at $1.8 billion versus the consensus estimate of $1.74 billion.
However, the company stated it "will not be providing guidance at this time until there is further clarity on the timing of 737 MAX production rate increases from our customer in relation to FAA approval and ongoing price negotiations with Airbus."
Spirit's move to not provide guidance follows a similar announcement from Boeing last week as the companies face continued scrutiny following the mid-air blowout on a 737 MAX 9 aircraft.
Spirit's CEO, Pat Shanahan, made a point of stating that the quality and safety of the products the company produces "is paramount above all."
"Over the past month, we have been working shoulder to shoulder with our customer to take a series of actions to strengthen our systems and processes to accelerate the improvement of our operations," he added.
Reacting to the report, analysts noted that the company's revenue beat was primarily due to higher production deliveries on commercial programs and higher revenues in defense and space and aftermarket segments.
They also said SPR had been expected to have completed Airbus price negotiations prior to releasing 4Q23 results, "though [the] focus has likely shifted amid flight safety/production issues."
Analysts commented that the report was "messy but profitable."
"The results weren't compelling, and so stock performance hinges on commentary from management about FCF potential positivity in 2024, color on the 737 production systems, and any updates on Airbus negotiations," they wrote.