Why Spirit AeroSystems Stock Is Surging Wednesday

Spirit Aerosystems Holdings Inc SPR shares are trading higher Wednesday after the company reached an agreement with Boeing Co BA to support production stability. The company also issued guidance.

What Happened: Spirit AeroSystems said it entered into a Memorandum of Agreement with Boeing that enables greater collaboration between the companies in an effort to improve quality and boost deliveries.

“Boeing and Spirit will continue to work shoulder to shoulder to mitigate today’s operational challenges. Our collective teams will focus on further generating supply chain performance and resiliency," said Patrick Shanahan, president and CEO of Spirit AeroSystems.

Spirit also provided preliminary results for the third quarter. The company said it anticipates quarterly revenue of $1.43 billion to $1.45 billion, up from $1.277 billion last year, driven by higher production volumes. 

Spirit AeroSystems will report its third-quarter financial results before the market open on Nov. 1.

See Also: Why United Airlines Stock Is Trading Lower Wednesday

SPR Price Action: Spirit AeroSystems shares were up 25.2% at $21.52 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Boeing.