The Boeing Company (BA - Free Report) reported adjusted loss of $1.70 per share for first-quarter 2020, which came in narrower than the Zacks Consensus Estimate of a loss of $2.04. The bottom line however deteriorated significantly from the year-ago quarter’s earnings of $3.16.
This year-over-year downside can be primarily attributable to the impacts of the COVID-19 pandemic and 737 Max grounding, which resulted in lower commercial deliveries.
Including one-time items, the company incurred GAAP loss of $1.11 per share against earnings of $3.75 in the first quarter of 2019.
Revenues
In the quarter under review, Boeing’s revenues amounted to $16.91 billion, which missed the Zacks Consensus Estimate of $17.18 billion by 1.6%. The top line also plunged 26% from the year-ago quarter’s figure of $22.92 billion. This decline was primarily due to lower 737 deliveries as well as the COVID-19 pandemic that significantly affected airline passenger traffic.
Total Backlog
Backlog at the end of first-quarter 2020 declined to $438.6 billion from $463.4 billion at the end of 2019.
Segmental Performances
Commercial Airplane: Revenues at this segment slumped 48% to $6.21 billion on account of lower deliveries driven by the 737 MAX grounding as well as impacts of COVID-19.
The segment incurred operating loss of $2.07 billion against operating income of $1.17 billion in the year-ago quarter.
Boeing delivered 50 commercial planes during the quarter under review, down 66%.
Backlog for this segment remains healthy with over 5,000 airplanes valued at $352 billion.
Boeing Defense, Space & Security (BDS): This segment witnessed 8% year-over-year decline in revenues to $6.04 billion in the first quarter. The downside was on account of a charge imposed on the KC-46A Tanker.
Meanwhile, the segment incurred operating loss of $191 million against operating income of $852 million in the year-ago quarter.
Backlog at BDS was $64 billion, 28% of which comprised orders from international clients.
Global Services: Revenues at this segment inched up 0.2% to $4.63 billion due to higher government services volume. Moreover, operating earnings improved 8% year over year to $708 million.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $65 million compared with $66 million registered in the year-ago quarter. Operating earnings generated by this unit totaled $24 million compared with $20 million in the year-ago quarter.
At the end of first-quarter 2020, BCC's portfolio balance was $2.2 billion.
Financial Condition
Boeing exited the first quarter with cash and cash equivalents of $15.04 billion and short-term and other investments of $0.49 billion. At the end of 2019, the company had cash and cash equivalents of $9.49 billion and short-term and other investments of $0.55 billion.
Long-term debt amounted to $33.75 billion at the end of Mar 31, 2020, up from $19.96 billion at 2019 end.
Boeing generated $4.30 billion of operating cash outflow at the end of the first quarter against cash inflow of $2.78 billion at the end of 2019. Free cash outflow totaled $4.73 billion at first quarter 2020end against cash inflow with $2.29 billion at the end of first quarter of 2019.
During the first quarter, the company paid out $1.16 billion of dividends, almost in line with the year-ago quarter’s figure.
Zacks Rank
Boeing currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2020 adjusted earnings of 64 cents per share, which missed the Zacks Consensus Estimate of 67 cents by 4.5%.
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The Boeing Company (BA - Free Report) reported adjusted loss of $1.70 per share for first-quarter 2020, which came in narrower than the Zacks Consensus Estimate of a loss of $2.04. The bottom line however deteriorated significantly from the year-ago quarter’s earnings of $3.16.
This year-over-year downside can be primarily attributable to the impacts of the COVID-19 pandemic and 737 Max grounding, which resulted in lower commercial deliveries.
Including one-time items, the company incurred GAAP loss of $1.11 per share against earnings of $3.75 in the first quarter of 2019.
Revenues
In the quarter under review, Boeing’s revenues amounted to $16.91 billion, which missed the Zacks Consensus Estimate of $17.18 billion by 1.6%. The top line also plunged 26% from the year-ago quarter’s figure of $22.92 billion. This decline was primarily due to lower 737 deliveries as well as the COVID-19 pandemic that significantly affected airline passenger traffic.
Total Backlog
Backlog at the end of first-quarter 2020 declined to $438.6 billion from $463.4 billion at the end of 2019.
Segmental Performances
Commercial Airplane: Revenues at this segment slumped 48% to $6.21 billion on account of lower deliveries driven by the 737 MAX grounding as well as impacts of COVID-19.
The segment incurred operating loss of $2.07 billion against operating income of $1.17 billion in the year-ago quarter.
Boeing delivered 50 commercial planes during the quarter under review, down 66%.
Backlog for this segment remains healthy with over 5,000 airplanes valued at $352 billion.
Boeing Defense, Space & Security (BDS): This segment witnessed 8% year-over-year decline in revenues to $6.04 billion in the first quarter. The downside was on account of a charge imposed on the KC-46A Tanker.
Meanwhile, the segment incurred operating loss of $191 million against operating income of $852 million in the year-ago quarter.
Backlog at BDS was $64 billion, 28% of which comprised orders from international clients.
Global Services: Revenues at this segment inched up 0.2% to $4.63 billion due to higher government services volume. Moreover, operating earnings improved 8% year over year to $708 million.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $65 million compared with $66 million registered in the year-ago quarter. Operating earnings generated by this unit totaled $24 million compared with $20 million in the year-ago quarter.
At the end of first-quarter 2020, BCC's portfolio balance was $2.2 billion.
Financial Condition
Boeing exited the first quarter with cash and cash equivalents of $15.04 billion and short-term and other investments of $0.49 billion. At the end of 2019, the company had cash and cash equivalents of $9.49 billion and short-term and other investments of $0.55 billion.
Long-term debt amounted to $33.75 billion at the end of Mar 31, 2020, up from $19.96 billion at 2019 end.
Boeing generated $4.30 billion of operating cash outflow at the end of the first quarter against cash inflow of $2.78 billion at the end of 2019. Free cash outflow totaled $4.73 billion at first quarter 2020end against cash inflow with $2.29 billion at the end of first quarter of 2019.
During the first quarter, the company paid out $1.16 billion of dividends, almost in line with the year-ago quarter’s figure.
Zacks Rank
Boeing currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2020 adjusted earnings of 64 cents per share, which missed the Zacks Consensus Estimate of 67 cents by 4.5%.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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