Boeing Slides After Missing Earnings, Burning More Cash Than Expected

Challenged aircraft-maker Boeing reported a smaller quarterly loss - helped by an improvement in aircraft deliveries as its 737 MAX jets come back online and airlines prepare for a recovery in travel this summer - even as it missed adjusted EPS expectations despite beating on revenue.

Below is a snapshot of the company's Q1 results:

  • Adj EPS Loss $1.53 vs. Loss $1.70 Y/Y, Est. loss 1.16
  • Neg Operating Cash Flow $3.39B, Est. Negative $3.12B
  • Neg Adj Free Cash Flow $3.678B, Est. Negative $3.34B
  • Revenue $15.22B, down from $16.9B Y/Y; Est. $15.12B

While the company missed EPS, it's worth noting that Boeing’s tax rate was 1.9% in the quarter, reflecting a benefit from its pre-tax losses and “true-ups to tax benefits previously recorded in 2020." Translation: its loss would have been even worse.

A breakdown of revenue:

  • Commercial Airplanes: 4.27bln (exp. 4.96bln)
  • Global Services: 3.75bln (exp. 3.93bln)
  • Integrated Defense, Space And Security: 7.19bln (exp. 6.36bln)

According to the company, revenue was primarily driven by lower 787 deliveries and commercial services volume, partially offset by a resumption of 737 deliveries and higher KC-46A Tanker revenue. A breakdown of revenue by segment:

  • Commercial Airplanes: 4.27bln (exp. 4.96bln)
  • Global Services: 3.75bln (exp. 3.93bln)
  • Integrated Defense, Space And Security: 7.19bln (exp. 6.36bln)

Boeing said it expects to see passenger traffic return to 2019 levels in 2023-2024 and return to long-term trends thereafter. That said, for now the company sees Airlines as remaining under pressure and adjusting operations and fleet planning. The company expects to incur around $5BN of abnormal production costs on a cumulative basis in its commercial airplanes segment.

Some more headlines:

  • Continued Progress on Safe Return to Service of 737 Max
  • 737 Program Is Currently Producing at A Low Rate
  • Boeing to Gradually Boost 737 Production to 31/MO in Early 2022
  • Boeing Still Expects to Deliver First 777x in Late 2023
  • Boeing Also Resumed 787 Deliveries in Late March
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