Spirit AeroSystems Holdings stock jumped the most in eight years after reaching an understanding with Boeing, its largest customer, that could end a sprawling contract dispute affecting every commercial jet in the planemakers product lineup. <\/p>\n
The two companies signed a memorandum of understanding addressing open commercial issues on a range of Boeing programs, including the 737 Max and 787 Dreamliner, Spirit said in a statement Wednesday as it announced earnings. The manufacturers are still working to finalize the five-year pact. <\/p>\n
The tentative accord takes a major step toward removing a question mark surrounding Spirit, which makes major air-frame components and relies on Boeing for 80 percent of sales. The pact also provides a boost to Chief Executive Officer Thomas Gentile, who joined Wichita, Kansas-based Spirit last year. <\/p>\n
Despite warnings that a deal still isnt finalized, investors are likely to take the news of an MoU with Boeing as a sign of good progress and at least a partial removal of the uncertainty that has clouded the stock over the last few years, Rob Stallard, an analyst at Vertical Research Partners, told clients. <\/p>\n
Spirit shares closed up 17 percent at $71.72. The stocks largest previous intraday gain in eight years was 15 percent. Boeing dropped 1 percent to $237.95. <\/p>\n
Spirit AeroSystems also posted earnings Wednesday morning. <\/p>\n<\/p>\n
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The aerospace manufacturers adjusted earnings rose to $1.57 a share in the second quarter, exceeding the $1.20 average of analyst estimates compiled by Bloomberg. Sales were little changed at $1.83 billion. Analysts had predicted $1.74 billion. <\/p>\n
The company also increased its full-year profit forecast to a range of $5 to $5.25 a share. Analysts had anticipated $4.81 a share. <\/p>\n
Spirit employs about 1,400 people at its Tulsa facility and about 250 workers in McAlester. <\/p>\n
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Boeing supplier Spirit AeroSystems surges on tentative deal in contract dispute - Tulsa World<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Spirit AeroSystems Holdings stock jumped the most in eight years after reaching an understanding with Boeing, its largest customer, that could end a sprawling contract dispute affecting every commercial jet in the planemakers product lineup. Continue reading