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Boeing's (BA) Q3 Earnings Miss Estimates, Revenues Rise Y/Y
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The Boeing Company (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.
Revenues
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.
The Boeing Company Price, Consensus and EPS Surprise
Backlog at the end of third-quarter 2021 was $367.1 billion, up from $363.5 billion at the end of second-quarter 2021.
Segmental Performances
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.
Financial Condition
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.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2021 adjusted earnings of 13 cents per share, which exceeded the Zacks Consensus Estimate of 8 cents by 62.5%.
Raytheon Technologies Corporation’s (RTX - Free Report) third-quarter 2021 adjusted earnings per share (EPS) of $1.26 outpaced the Zacks Consensus Estimate of $1.07 by 17.8%.
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2021 adjusted earnings of $6.66 per share, which surpassed the Zacks Consensus Estimate of $1.96 by a whopping 239.8%.
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Boeing's (BA) Q3 Earnings Miss Estimates, Revenues Rise Y/Y
The Boeing Company (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.
Revenues
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.
The Boeing Company Price, Consensus and EPS Surprise
The Boeing Company price-consensus-eps-surprise-chart | The Boeing Company Quote
Total Backlog
Backlog at the end of third-quarter 2021 was $367.1 billion, up from $363.5 billion at the end of second-quarter 2021.
Segmental Performances
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.
Financial Condition
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.
Zacks Rank
Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Hexcel Corporation (HXL - Free Report) reported third-quarter 2021 adjusted earnings of 13 cents per share, which exceeded the Zacks Consensus Estimate of 8 cents by 62.5%.
Raytheon Technologies Corporation’s (RTX - Free Report) third-quarter 2021 adjusted earnings per share (EPS) of $1.26 outpaced the Zacks Consensus Estimate of $1.07 by 17.8%.
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2021 adjusted earnings of $6.66 per share, which surpassed the Zacks Consensus Estimate of $1.96 by a whopping 239.8%.