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Why Is Boeing (BA) Up 4.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for Boeing (BA - Free Report) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Boeing due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Boeing Q4 Earnings Miss Estimates, Revenues Decline Y/Y
The Boeing Company incurred an adjusted loss of $7.69 per share for fourth-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of 9 cents. However, the bottom line improved from the year-ago quarter’s loss of $15.25.
Including one-time items, the company posted a GAAP loss of $7.02 per share compared with a loss of $14.65 incurred in the fourth quarter of 2020.
The year-over-year improvement can be attributed primarily to lower charges and higher commercial volume witnessed in the reported quarter.
For 2021, the company reported an adjusted loss of $9.44 per share, which came in wider than the Zacks Consensus Estimate of a loss of $1.70. The bottom line declined from 2020’s adjusted loss of $23.25 per share.
Revenues
In the quarter under review, Boeing’s revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%. The top line fell 3% from the year-ago quarter’s figure of $15.30 billion.
This decline was due to lower year-over-year revenues registered by the company’s Defense, Space & Security business unit.
For 2021, the company recorded revenues of $62.29 billion, which missed the Zacks Consensus Estimate of $64.52 billion by 3.5%. However, full-year revenues improved from 2020’s $58.16 billion.
Total Backlog
Backlog at the end of fourth-quarter 2021 increased to $377.50 billion from $363.40 billion at the end of 2020.
Segmental Performances
Commercial Airplane: Revenues at this segment remained flat year over year at $4.75 billion. Higher 737 deliveries boosted revenues, which was offset by lower widebody deliveries and less favorable mix. The segment incurred an operating loss of $4.45 billion compared with a loss of $7.65 billion in the year-ago quarter.
Boeing delivered 99 commercial planes during the quarter under review, down 68% year over year.
Backlog for this segment remained healthy with over 4,200 airplanes valued at $297 billion.
Boeing Defense, Space & Security (BDS): This segment recorded revenues worth $5.86 billion in the fourth quarter, reflecting year-over-year decline of 14%, primarily driven by lower volume and less favorable performance across the portfolio.
Meanwhile, this unit incurred an operating loss of $255 million, against an operating income of $502 million in the year-ago quarter.
Backlog at BDS was $60 billion, 33% of which comprised orders from international clients.
Global Services: Revenues at this segment improved 15% to $4.29 billion on account of higher commercial services volume and favorable mix. This unit generated operating income of $401 million compared with $143 million in the year-ago quarter.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $63 million compared with $56 million in the year-ago quarter.
At the end of fourth-quarter 2021, BCC's portfolio balance was $7 billion.
Financial Condition
Boeing exited 2021 with cash and cash equivalents of $8.05 billion, and short-term and other investments of $8.19 billion. At the end of 2020, the company had $7.75 billion of cash and cash equivalents, and $17.84 billion of short-term and other investments. Long-term debt amounted to $56.81 billion at the end of 2021, down from $61.89 billion at 2020 end.
The company’s operating cash outflow at the end of 2021 was $3.42 billion compared with $18.41 billion at the end of 2020.
Free cash outflow totaled $4.40 billion at the end of 2021 end compared with $19.71 billion at the end of 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -78.14% due to these changes.
VGM Scores
Currently, Boeing has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Boeing has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Boeing (BA) Up 4.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Boeing (BA - Free Report) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Boeing due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Boeing Q4 Earnings Miss Estimates, Revenues Decline Y/Y
The Boeing Company incurred an adjusted loss of $7.69 per share for fourth-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of 9 cents. However, the bottom line improved from the year-ago quarter’s loss of $15.25.
Including one-time items, the company posted a GAAP loss of $7.02 per share compared with a loss of $14.65 incurred in the fourth quarter of 2020.
The year-over-year improvement can be attributed primarily to lower charges and higher commercial volume witnessed in the reported quarter.
For 2021, the company reported an adjusted loss of $9.44 per share, which came in wider than the Zacks Consensus Estimate of a loss of $1.70. The bottom line declined from 2020’s adjusted loss of $23.25 per share.
Revenues
In the quarter under review, Boeing’s revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%. The top line fell 3% from the year-ago quarter’s figure of $15.30 billion.
This decline was due to lower year-over-year revenues registered by the company’s Defense, Space & Security business unit.
For 2021, the company recorded revenues of $62.29 billion, which missed the Zacks Consensus Estimate of $64.52 billion by 3.5%. However, full-year revenues improved from 2020’s $58.16 billion.
Total Backlog
Backlog at the end of fourth-quarter 2021 increased to $377.50 billion from $363.40 billion at the end of 2020.
Segmental Performances
Commercial Airplane: Revenues at this segment remained flat year over year at $4.75 billion. Higher 737 deliveries boosted revenues, which was offset by lower widebody deliveries and less favorable mix. The segment incurred an operating loss of $4.45 billion compared with a loss of $7.65 billion in the year-ago quarter.
Boeing delivered 99 commercial planes during the quarter under review, down 68% year over year.
Backlog for this segment remained healthy with over 4,200 airplanes valued at $297 billion.
Boeing Defense, Space & Security (BDS): This segment recorded revenues worth $5.86 billion in the fourth quarter, reflecting year-over-year decline of 14%, primarily driven by lower volume and less favorable performance across the portfolio.
Meanwhile, this unit incurred an operating loss of $255 million, against an operating income of $502 million in the year-ago quarter.
Backlog at BDS was $60 billion, 33% of which comprised orders from international clients.
Global Services: Revenues at this segment improved 15% to $4.29 billion on account of higher commercial services volume and favorable mix. This unit generated operating income of $401 million compared with $143 million in the year-ago quarter.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $63 million compared with $56 million in the year-ago quarter.
At the end of fourth-quarter 2021, BCC's portfolio balance was $7 billion.
Financial Condition
Boeing exited 2021 with cash and cash equivalents of $8.05 billion, and short-term and other investments of $8.19 billion. At the end of 2020, the company had $7.75 billion of cash and cash equivalents, and $17.84 billion of short-term and other investments. Long-term debt amounted to $56.81 billion at the end of 2021, down from $61.89 billion at 2020 end.
The company’s operating cash outflow at the end of 2021 was $3.42 billion compared with $18.41 billion at the end of 2020.
Free cash outflow totaled $4.40 billion at the end of 2021 end compared with $19.71 billion at the end of 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -78.14% due to these changes.
VGM Scores
Currently, Boeing has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Boeing has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.