We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Boeing (BA) Up 6.3% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Boeing (BA - Free Report) . Shares have added about 6.3% 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 catalysts.
Boeing’s Q1 Earnings Lag Estimates, Revenues Beat
The Boeing Company incurred adjusted loss of $1.53 per share for first-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of $1.17. However, the bottom line improved from the year-ago quarter’s loss of $1.70.
Including one-time items, the company incurred GAAP loss of 92 cents per share compared with a loss of $1.11 incurred in the first quarter of 2020.
The year-over-year bottom line improvement can be attributed to KC-46A Tanker improvement, higher 737 deliveries and lower commercial airplanes period costs.
Revenues
In the quarter under review, Boeing’s revenues amounted to $15.22 billion, which beat the Zacks Consensus Estimate of $14.38 billion by 5.8%. The top line however declined 10% from the year-ago quarter’s figure of $16.91 billion.
This decline was due to lower 787 deliveries and commercial services volume.
Total Backlog
Backlog at the end of first-quarter 2021 inched up to $364 billion from $363.4 billion at the end of fourth-quarter 2020.
Segmental Performances
Commercial Airplane: Revenues at this segment plunged 31% to $4.27 billion due to lower 787 deliveries. The segment incurred operating loss of $856 million compared with loss of $2.07 billion in the year-ago quarter.
Boeing delivered 77 commercial planes during the quarter under review, up 54% year over year.
Backlog for this segment remained healthy with over 4,000 airplanes valued at $283 billion.
Boeing Defense, Space & Security (BDS): This segment recorded revenues worth $7.19 billion in the first quarter, reflecting 19% year-over-year improvement, primarily driven by higher KC-46A Tanker revenues due to orders for 27 aircraft.
Meanwhile, this unit generated operating income of $405 million against operating loss of $191 million in the year-ago quarter.
Backlog at BDS was $61 billion, 31% of which comprised orders from international clients.
Global Services: Revenues at this segment declined 19% to $3.75 billion on account of lower commercial services volume thanks to COVID-19 impacts. Moreover, this unit generated operating income of $441 million compared with $708 million in the year-ago quarter.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $60 million compared with $65 million registered in the year-ago quarter.
At the end of first-quarter 2021, BCC's portfolio balance was $1.9 billion.
Financial Condition
Boeing exited the first quarter with cash and cash equivalents of $7.06 billion, and short-term and other investments of $14.86 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 $57.55 billion at the end of the first quarter, down from $61.89 billion at 2020 end.
Boeing’s operating cash outflow at the end of first-quarter 2021 was $3.39 billion compared with $4.30 billion at the end of first-quarter 2020.
Free cash outflow totaled $3.68 billion at the end of first quarter 2021 compared with $4.73 billion at the end of first-quarter 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -652.38% due to these changes.
VGM Scores
At this time, Boeing has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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. Notably, Boeing has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Boeing (BA) Up 6.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Boeing (BA - Free Report) . Shares have added about 6.3% 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 catalysts.
Boeing’s Q1 Earnings Lag Estimates, Revenues Beat
The Boeing Company incurred adjusted loss of $1.53 per share for first-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of $1.17. However, the bottom line improved from the year-ago quarter’s loss of $1.70.
Including one-time items, the company incurred GAAP loss of 92 cents per share compared with a loss of $1.11 incurred in the first quarter of 2020.
The year-over-year bottom line improvement can be attributed to KC-46A Tanker improvement, higher 737 deliveries and lower commercial airplanes period costs.
Revenues
In the quarter under review, Boeing’s revenues amounted to $15.22 billion, which beat the Zacks Consensus Estimate of $14.38 billion by 5.8%. The top line however declined 10% from the year-ago quarter’s figure of $16.91 billion.
This decline was due to lower 787 deliveries and commercial services volume.
Total Backlog
Backlog at the end of first-quarter 2021 inched up to $364 billion from $363.4 billion at the end of fourth-quarter 2020.
Segmental Performances
Commercial Airplane: Revenues at this segment plunged 31% to $4.27 billion due to lower 787 deliveries. The segment incurred operating loss of $856 million compared with loss of $2.07 billion in the year-ago quarter.
Boeing delivered 77 commercial planes during the quarter under review, up 54% year over year.
Backlog for this segment remained healthy with over 4,000 airplanes valued at $283 billion.
Boeing Defense, Space & Security (BDS): This segment recorded revenues worth $7.19 billion in the first quarter, reflecting 19% year-over-year improvement, primarily driven by higher KC-46A Tanker revenues due to orders for 27 aircraft.
Meanwhile, this unit generated operating income of $405 million against operating loss of $191 million in the year-ago quarter.
Backlog at BDS was $61 billion, 31% of which comprised orders from international clients.
Global Services: Revenues at this segment declined 19% to $3.75 billion on account of lower commercial services volume thanks to COVID-19 impacts. Moreover, this unit generated operating income of $441 million compared with $708 million in the year-ago quarter.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $60 million compared with $65 million registered in the year-ago quarter.
At the end of first-quarter 2021, BCC's portfolio balance was $1.9 billion.
Financial Condition
Boeing exited the first quarter with cash and cash equivalents of $7.06 billion, and short-term and other investments of $14.86 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 $57.55 billion at the end of the first quarter, down from $61.89 billion at 2020 end.
Boeing’s operating cash outflow at the end of first-quarter 2021 was $3.39 billion compared with $4.30 billion at the end of first-quarter 2020.
Free cash outflow totaled $3.68 billion at the end of first quarter 2021 compared with $4.73 billion at the end of first-quarter 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -652.38% due to these changes.
VGM Scores
At this time, Boeing has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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. Notably, Boeing has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.