We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Boeing (BA) Q2 Earnings Miss Estimates, Revenues Decline Y/Y
Read MoreHide Full Article
The Boeing Company (BA - Free Report) incurred an adjusted loss of 37 cents per share for second-quarter 2022, much wider than the Zacks Consensus Estimate of a loss of 8 cents. The bottom line also deteriorated from the year-ago quarter’s earnings of 40 cents.
Including one-time items, the company posted GAAP earnings of 32 cents per share compared with $1 reported in the second quarter of 2021.
The year-over-year downside is attributable to lower defense volume and unfavorable performance.
The Boeing Company Price, Consensus and EPS Surprise
In the quarter under review, Boeing’s revenues amounted to $16.68 billion, which missed the Zacks Consensus Estimate of $17.74 billion by 6%. The top line also declined 2% from the year-ago quarter’s figure of $16.99 billion.
This decline was due to lower year-over-year revenues registered by the company’s Defense, Space & Security business units.
Total Backlog
Backlog at the end of second-quarter 2022 increased to $371.73 billion from $370.84 billion at the end of first-quarter 2022.
Segmental Performances
Commercial Airplane: Revenues at this segment increased 3% year over year to $6.22 billion, driven by higher 737 deliveries. The segment incurred an operating loss of $242 million compared with a loss of $472 million in the year-ago quarter.
Boeing delivered 121 commercial planes during the quarter under review, up 53% 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 $6.19 billion in the second quarter, reflecting a year-over-year decline of 10%, primarily on account of charges on fixed-price development programs, including MQ-25 and Commercial Crew, as well as unfavorable performance on other programs and lower volume on derivative aircraft program.
Meanwhile, this unit generated an operating profit of $71 million compared with an operating income of $958 million in the year-ago quarter.
Backlog at BDS was $55 billion, 33% of which comprised orders from international clients.
Global Services: Revenues at this segment improved 6% to $4.30 billion on account of higher commercial services volume and favorable mix. This unit generated an operating income of $728 million compared with $531 million in the year-ago quarter.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $52 million compared with $78 million in the year-ago quarter.
At the end of second-quarter 2022, BCC's portfolio balance was $1.6 billion.
Financial Condition
Boeing exited second-quarter 2022 with cash and cash equivalents of $10.09 billion and short-term and other investments of $1.36 billion. At the end of 2021, the company had $8.05 billion of cash and cash equivalents and $8.19 billion of short-term and other investments. Long-term debt amounted to $51.79 billion at the end of second-quarter 2022, down from $56.81 billion at 2021 end.
The company’s operating cash outflow as of Jun 30, 2022 was $3.14 billion compared with $3.87 billion at the end of second-quarter 2021.
Free cash outflow totaled $3.75 billion at the end of second-quarter 2022 compared with $4.38 billion at the end of second-quarter 2021.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. The bottom line however declined 1.6% year over year.
The company’s net sales amounted to $15.45 billion, which missed the Zacks Consensus Estimate of $16.16 billion by 4.4%. The top line also declined 9.3% from $17.03 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.
The company’s net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings recorded a solid surge of 53.2% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $476.1 million. The reported figure surpassed the Zacks Consensus Estimate of $468 million by 1.7% and also improved 8.8% from $437.6 million recorded in the year-ago quarter.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Boeing (BA) Q2 Earnings Miss Estimates, Revenues Decline Y/Y
The Boeing Company (BA - Free Report) incurred an adjusted loss of 37 cents per share for second-quarter 2022, much wider than the Zacks Consensus Estimate of a loss of 8 cents. The bottom line also deteriorated from the year-ago quarter’s earnings of 40 cents.
Including one-time items, the company posted GAAP earnings of 32 cents per share compared with $1 reported in the second quarter of 2021.
The year-over-year downside is attributable to lower defense volume and unfavorable performance.
The Boeing Company Price, Consensus and EPS Surprise
The Boeing Company price-consensus-eps-surprise-chart | The Boeing Company Quote
Revenues
In the quarter under review, Boeing’s revenues amounted to $16.68 billion, which missed the Zacks Consensus Estimate of $17.74 billion by 6%. The top line also declined 2% from the year-ago quarter’s figure of $16.99 billion.
This decline was due to lower year-over-year revenues registered by the company’s Defense, Space & Security business units.
Total Backlog
Backlog at the end of second-quarter 2022 increased to $371.73 billion from $370.84 billion at the end of first-quarter 2022.
Segmental Performances
Commercial Airplane: Revenues at this segment increased 3% year over year to $6.22 billion, driven by higher 737 deliveries. The segment incurred an operating loss of $242 million compared with a loss of $472 million in the year-ago quarter.
Boeing delivered 121 commercial planes during the quarter under review, up 53% 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 $6.19 billion in the second quarter, reflecting a year-over-year decline of 10%, primarily on account of charges on fixed-price development programs, including MQ-25 and Commercial Crew, as well as unfavorable performance on other programs and lower volume on derivative aircraft program.
Meanwhile, this unit generated an operating profit of $71 million compared with an operating income of $958 million in the year-ago quarter.
Backlog at BDS was $55 billion, 33% of which comprised orders from international clients.
Global Services: Revenues at this segment improved 6% to $4.30 billion on account of higher commercial services volume and favorable mix. This unit generated an operating income of $728 million compared with $531 million in the year-ago quarter.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $52 million compared with $78 million in the year-ago quarter.
At the end of second-quarter 2022, BCC's portfolio balance was $1.6 billion.
Financial Condition
Boeing exited second-quarter 2022 with cash and cash equivalents of $10.09 billion and short-term and other investments of $1.36 billion. At the end of 2021, the company had $8.05 billion of cash and cash equivalents and $8.19 billion of short-term and other investments. Long-term debt amounted to $51.79 billion at the end of second-quarter 2022, down from $56.81 billion at 2021 end.
The company’s operating cash outflow as of Jun 30, 2022 was $3.14 billion compared with $3.87 billion at the end of second-quarter 2021.
Free cash outflow totaled $3.75 billion at the end of second-quarter 2022 compared with $4.38 billion at the end of second-quarter 2021.
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
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. The bottom line however declined 1.6% year over year.
The company’s net sales amounted to $15.45 billion, which missed the Zacks Consensus Estimate of $16.16 billion by 4.4%. The top line also declined 9.3% from $17.03 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 30 cents by 10%.
The company’s net sales totaled $393 million, which beat the Zacks Consensus Estimate of $383 million by 2.6%. Moreover, the top line witnessed an improvement of 22.7% from the year-ago quarter’s $320.3 million.
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 5.9%. Earnings recorded a solid surge of 53.2% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $476.1 million. The reported figure surpassed the Zacks Consensus Estimate of $468 million by 1.7% and also improved 8.8% from $437.6 million recorded in the year-ago quarter.