Boeing Earnings On Tap As Key Suppliers Warn Of New Headwinds

Boeing (BA) gears up to report first-quarter results after key jet-engine suppliers warned that new headwinds from China and Russia have dimmed the company’s 2022 outlook.

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Investors may hope for details on the important 787 jet, whose deliveries remain suspended so far. The 787 issue has hurt airlines and Boeing suppliers already strained by the pandemic’s ill effects on travel and the prolonged grounding of Boeing’s 737 Max jets after fatal crashes.

Boeing has already warned that it expects Q1 to be the year’s weakest quarter for deliveries, revenue, earnings and cash flow.

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Boeing Earnings

Estimates: Analysts polled by FactSet expect Boeing to narrow losses to 25 cents per share from a loss of $1.53 a year ago. Revenue is seen up 5% to $16.021 billion.

Results: Check back early Wednesday.

In Q1, Boeing has already disclosed that it delivered 95 commercial jets and 41 defense jets. That tally included one F-15 fighter jet, 86 Boeing 737 jets and no 787 jets.

Reuters reported on April 20 that Boeing has advised key airlines and parts suppliers that 787 deliveries would resume in the second half of 2022, after they were halted over structural flaws.

Outlook: Analysts expect Boeing to swing to earnings of $2.82 per share in all of 2022 from a loss of $9.44 a year ago, FactSet says.

Boeing Stock

Shares of the Dow Jones aerospace and defense giant lost 4.9% to 167.15 in Tuesday’s stock market trading, well below the 50-day moving average. Boeing sits even further under the 200-day average, and its relative strength line shows serious lag. Archrival Airbus (EADSY) shed 3.2% and also remains mired below its 50- and 200-day lines.

On Tuesday, key Boeing jet-engine suppliers General Electric (GE) and Raytheon Technologies (GE) on Tuesday warned of new headwinds from the Russia-Ukraine war and the Covid resurgence in China.

Raytheon cut 2022 revenue while GE guided EPS to the low end of its forecast. RTX stock edged lower, while GE stock plunged more than 10%.

Last week, Lockheed Martin (LMT) earnings took a hit from supply disruptions due to the Covid-19 omicron variant and rising inflation.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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