The Boeing Company ( BA Quick Quote BA - Free Report) reported an adjusted loss of 60 cents per share for third-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of 17 cents. The bottom line however improved significantly from the year-ago quarter’s loss of $1.39.
Including one-time items, the company reported a GAAP loss of 19 cents per share compared with a loss of 79 cents incurred in the third quarter of 2020.
The year-over-year bottom-line improvement can be attributed to higher commercial volume.
In the quarter under review, Boeing’s revenues amounted to $15,278 million, which missed the Zacks Consensus Estimate of $16,363 million by 6.6%. The top line, however, improved 8% from the year-ago quarter’s figure of $14,139 million.
This improvement in the top line was driven by higher commercial airplanes and services volume.
Backlog at the end of third-quarter 2021 was $367.1 billion, up from $363.5 billion at the end of second-quarter 2021.
Commercial Airplane: Revenues at this segment improved a solid 24% to $4.46 billion due to higher 737 jet deliveries. The segment incurred an operating loss of $693 million compared with a loss of $1.37 billion in the year-ago quarter.
Boeing delivered 85 commercial planes during the quarter under review, up 204% year over year.
Backlog for this segment remained healthy, with over 4,100 airplanes valued at $290 billion.
Boeing Defense, Space & Security (BDS): This segment recorded revenues worth $6.62 billion in the third quarter, reflecting a 3% year-over-year decline.
This unit generated an operating income of $436 million compared with an operating income of $628 million in the year-ago quarter.
Backlog at BDS was $58 billion, 33% of which comprised orders from international clients.
Global Services: Revenues at this segment increased 14% to $4.22 billion on higher commercial services volume.
Moreover, this unit generated an operating income of $644 million compared with an operating income of $271 million in the year-ago quarter.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $71 million, which came in line with the year-ago quarter’s reported figure.
At the end of third-quarter 2021, BCC's portfolio balance was $1.8 billion.
Boeing exited the third quarter with cash and cash equivalents of $9.76 billion, and short-term and other investments of $10.23 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 $57.04 billion at the end of the third quarter, down from $61.89 billion at 2020 end.
Boeing’s operating cash outflow at the end of third-quarter 2021 was $4.13 billion compared with $14.40 billion at the end of third-quarter 2020.
Free cash outflow totaled $4.89 billion at the end of third-quarter 2021 compared with free cash outflow of $15.44 billion at the end of third-quarter 2020.
Boeing currently carries a Zacks Rank #3 (Hold). You can see
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