Earnings Analysis for SPR
Revenue Analysis
Total Revenue: Observing a decrease across the quarters from $1,812,900,000 in 2023-12-31 to $1,361,400,000 in 2023-06-30 before a slight recovery to $1,431,400,000 in 2023-03-31. Such fluctuations highlight volatility in market demand or sales strategy adjustments.
Gross Profit: Significant change is noticed, swinging from a profit of $291,400,000 in 2023-12-31 to losses, exemplified by a $53,600,000 loss in 2023-09-30, indicating cost pressures or pricing wars negatively impacting margins.
Cost Management
Cost of Revenue: Remains relatively high, signalling potential inefficiencies in production or procurement. The figures range from approximately $1.39 billion to over $1.52 billion.
Operating Expense: Consistent increase in operating expenses, reaching up to $123.9 million in 2023-03-31, suggests higher operational activity or possibly escalating operational costs.
Total Expenses: Increasing trend, highlighting ongoing expense management challenges.
Profitability Analysis
EBITDA: Displays inconsistencies, emerging from $273.3 million to losses in the subsequent quarters, reflecting underlying operational issues.
Operating Income: Shifts from a positive $213.2 million to significant losses, mirroring the challenges seen in EBITDA and gross profit, suggesting operational inefficiencies.
Pretax Income: Follows a similar trend with considerable losses culminating in -$284.9 million by 2023-03-31, indicating substantial profitability challenges.
Net Income: Marked by volatility with a net income of $75.4 million at 2023-12-31 transitioning into losses, as highlighted by -$281.2 million in 2023-03-31.
Cash Flow Indicators
Reconciled Depreciation: Relatively stable, suggesting consistent capital expenditure on assets.
Interest Expense: Indicative of high debt levels with expenses ranging from $72.4 million to $97.6 million.
Taxation
Tax Rate: Fluctuates radically throughout the quarters, raising potential flags around fiscal management or changes in tax regulations.
Tax Provision: The tax provision figures are inconsistent with a sudden negative figure of -$4.3 million in 2023-03-31, possibly due to losses.
Shareholder Metrics
Diluted and Basic EPS: Follow a downward trajectory, turning negative in concert with net losses, affecting shareholder returns.
Average Shares: Remain relatively stable, with minor fluctuations indicating no significant buybacks or dilutions.
Net Income Available to Common Stockholders: Directly syncs with net income figures, impacting shareholder value negatively in times of losses.
Conclusion
SPR has faced significant operational and profitability challenges over the analyzed period, marked by revenue volatility, increasing costs, and profitability constraints. Strategic reviews focusing on cost efficiency, market adaptation, and possibly financial restructuring may be imperative moving forward.