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Why Is Boeing (BA) Down 2.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Boeing (BA - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Boeing due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Boeing's Q1 Earnings Miss Estimates, Revenues Beat
Boeing incurred an adjusted loss of $1.27 per share for first-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. The bottom line, however, improved from the year-ago quarter’s loss of $2.75 per share.
The year-over-year upside can be attributed to improved commercial aerospace volume.
Including one-time items, the company reported GAAP loss of 69 cents per share, narrower than the year-ago quarter’s reported loss of $2.06.
Revenues
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.
This improvement was driven by higher year-over-year revenues registered by the company’s Commercial Airplanes, Global Services and Defense, Space & Security business units.
Total Backlog
Backlog at the end of the first quarter was $411.45 billion, up from $404.38 billion recorded at the end of fourth-quarter 2022.
Segmental Performances
Commercial Airplane: Revenues at this segment increased 60% year over year to $6.70 billion, driven by higher 737 and 787 deliveries. The segment incurred an operating loss of $615 million compared with an operating loss of $897 million in the year-ago quarter.
Boeing delivered 130 commercial planes during the quarter under review, up 37% year over year.
The backlog for this segment remained healthy, with more than 4,500 airplanes valued at $334 billion.
Boeing Defense, Space & Security (BDS): The segment recorded revenues of $6.54 billion, indicating a year-over-year increase of 19%. This was primarily driven by improved deliveries. The unit incurred an operating loss of $212 million compared with an operating loss of $929 million in the year-ago quarter.
The backlog at BDS was $58 billion, 30% of which comprised of orders from international clients.
Global Services: Revenues at this segment improved 9% to $4.72 billion on account of higher commercial services volume and favorable mix. This unit generated an operating income of $847 million compared with $632 million in the prior-year quarter.
Boeing Capital Corporation (BCC): This segment reported negative quarterly revenues of $42 million.
Financial Condition
Boeing exited first-quarter 2023 with cash and cash equivalents of $10.81 billion, and short-term and other investments of $3.96 billion. At the end of 2022, the company had cash and cash equivalents of $14.61 billion, and short-term and other investments of $2.61 billion. Long-term debt amounted to $47.47 billion at the end of the first quarter, down from $51.81 billion recorded at the end of 2022.
The company’s operating cash outflow as of Mar 31, 2023, was $318 million compared with $3.22 billion at the end of 2022.
Free cash outflow totaled $786 million at the end of first-quarter 2023 compared with $3.57 billion at the end of first-quarter 2022.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -454.42% due to these changes.
VGM Scores
At this time, Boeing has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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.
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Why Is Boeing (BA) Down 2.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Boeing (BA - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Boeing due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Boeing's Q1 Earnings Miss Estimates, Revenues Beat
Boeing incurred an adjusted loss of $1.27 per share for first-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. The bottom line, however, improved from the year-ago quarter’s loss of $2.75 per share.
The year-over-year upside can be attributed to improved commercial aerospace volume.
Including one-time items, the company reported GAAP loss of 69 cents per share, narrower than the year-ago quarter’s reported loss of $2.06.
Revenues
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.
This improvement was driven by higher year-over-year revenues registered by the company’s Commercial Airplanes, Global Services and Defense, Space & Security business units.
Total Backlog
Backlog at the end of the first quarter was $411.45 billion, up from $404.38 billion recorded at the end of fourth-quarter 2022.
Segmental Performances
Commercial Airplane: Revenues at this segment increased 60% year over year to $6.70 billion, driven by higher 737 and 787 deliveries. The segment incurred an operating loss of $615 million compared with an operating loss of $897 million in the year-ago quarter.
Boeing delivered 130 commercial planes during the quarter under review, up 37% year over year.
The backlog for this segment remained healthy, with more than 4,500 airplanes valued at $334 billion.
Boeing Defense, Space & Security (BDS): The segment recorded revenues of $6.54 billion, indicating a year-over-year increase of 19%. This was primarily driven by improved deliveries. The unit incurred an operating loss of $212 million compared with an operating loss of $929 million in the year-ago quarter.
The backlog at BDS was $58 billion, 30% of which comprised of orders from international clients.
Global Services: Revenues at this segment improved 9% to $4.72 billion on account of higher commercial services volume and favorable mix. This unit generated an operating income of $847 million compared with $632 million in the prior-year quarter.
Boeing Capital Corporation (BCC): This segment reported negative quarterly revenues of $42 million.
Financial Condition
Boeing exited first-quarter 2023 with cash and cash equivalents of $10.81 billion, and short-term and other investments of $3.96 billion. At the end of 2022, the company had cash and cash equivalents of $14.61 billion, and short-term and other investments of $2.61 billion. Long-term debt amounted to $47.47 billion at the end of the first quarter, down from $51.81 billion recorded at the end of 2022.
The company’s operating cash outflow as of Mar 31, 2023, was $318 million compared with $3.22 billion at the end of 2022.
Free cash outflow totaled $786 million at the end of first-quarter 2023 compared with $3.57 billion at the end of first-quarter 2022.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -454.42% due to these changes.
VGM Scores
At this time, Boeing has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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.