Boeing hits 17-month low on ‘messier-than-expected’ Q1

Image for Boeing Q1 results

Boeing Co (NYSE: BA) slid more than 10% on Wednesday to a 17-month low after reporting broadly disappointing results for its fiscal first quarter on weakness in commercial and defense.

Notable figures in Boeing Q1 earnings report

  • Net loss widened by more than 100% to $1.24 billion in Q1.
  • Per-share loss of $2.06 was much worse than last year’s 92 cents.
  • Adjusted for one-time items, Boeing lost $2.75 per share.
  • Revenue sunk 8.1% YoY to $13.99 billion, as per the earnings press release.
  • FactSet consensus was for 25 cents of per-share loss on $16.02 billion in revenue.
  • Commercial Airplanes slid 2.5% to miss Street expectations.
  • Defense, Space & Security tanked 23.6%, also below estimates.
  • A 15.1% growth in Global Services revenue was above analysts’ forecast.

According to Boeing, it had negative $3.57 billion in free cash flow, better than last year’s negative $3.68 billion, but still below negative $2.92 billion that analysts had forecast.

Highlights from CEO Calhoun’s interview on CNBC

Discussing the earnings report with CNBC’s Phil LeBeau on “Squawk on the Street”, CEO Dave Calhoun said:

Messier quarter than we would have liked. Familiar themes, supply chain constraints, COVID, inflation, have disproportionate impact on our company in one specific area; that’s our fixed price development contracts we do with our defense business.

The stock is now down a little under 30% for the year. Revenue from Commercial Airplanes, as per the American multinational, also took a hit due to the delay in wide-body aircraft deliveries. Commenting on inflationary pressures, the chief executive said:

We have more time than most because we’re long cycle business. Our contracts protect us to some extent. The second year when inflation begins to take a toll on consumers’ pocket, that’s when those numbers really matter to us. We’ll see if it causes a slowdown before we think about medium to long term pricing strategies.

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Source: https://invezz.com/news/2022/04/27/boeing-hits-17-month-low-on-messier-than-expected-q1/