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Boeing (BA) Up 3.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Boeing (BA - Free Report) . Shares have added about 3.2% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Boeing's Q1 Earnings Top Estimates, Revenues Decline Y/Y
The Boeing Company incurred an adjusted loss of $1.13 per share in first-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of $1.43. The bottom line also improved from the year-ago quarter’s reported loss of $1.27 per share.
Including one-time items, the company reported a GAAP loss of 56 cents per share, narrower than the year-ago quarter’s reported loss of 69 cents.
Revenues
Boeing’s revenues amounted to $16.57 billion, which missed the Zacks Consensus Estimate of $17.69 billion by 6.3%. The top line also declined 8% from the year-ago quarter’s reported figure of $17.92 billion.
The year-over-year deterioration can be attributed to lower commercial delivery volume.
Total Backlog
Backlog at the end of the first quarter of 2024 totaled $528.75 billion, up from $520.20 billion recorded at the end of the fourth quarter 2023.
Segmental Performances
Commercial Airplane: Revenues in this segment declined 31% year over year to $4.65 billion, due to lower 737 deliveries. The segment incurred an operating loss of $1.14 billion, indicating a deterioration from the year-ago quarter’s reported operating loss of $615 million.
During the quarter under review, Boeing delivered 83 commercial planes, down 36% year over year.
The backlog for this segment remained healthy, with more than 5,600 airplanes valued at $448 billion.
Boeing Defense, Space & Security (BDS): The segment recorded revenues of $6.95 billion, indicating a year-over-year improvement of 6%. It generated an operating income of $151 million, implying an improvement from the year-ago quarter’s reported operating loss of $212 million.
BDS recorded a backlog of $61 billion, 31% of which comprised orders from international clients.
Global Services: Revenues in this segment improved 7% year over year to $5.05 billion, driven by higher commercial volume. This unit generated an operating income of $916 million compared with $847 million in the prior-year quarter.
Financial Condition
Boeing exited first-quarter 2024 with cash and cash equivalents of $6.91 billion, and short-term and other investments of $0.62 billion. At the end of 2023, the company had cash and cash equivalents of $12.69 billion, and short-term and other investments worth $3.27 billion. Long-term debt amounted to $46.88 billion, down from $47.10 billion recorded at the end of 2023.
The company’s operating cash outflow as of Mar 31, 2024, was $3,362 million compared with $318 million as of Mar 31, 2023.
Free cash outflow totaled $3.93 billion at the end of first-quarter 2024 compared with $786 million at the end of first-quarter 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -395.35% 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. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Performance of an Industry Player
Boeing is part of the Zacks Aerospace - Defense industry. Over the past month, RTX (RTX - Free Report) , a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended March 2024 more than a month ago.
RTX reported revenues of $19.31 billion in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $1.34 for the same period compares with $1.22 a year ago.
RTX is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of -0.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for RTX. Also, the stock has a VGM Score of D.
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Boeing (BA) Up 3.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Boeing (BA - Free Report) . Shares have added about 3.2% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Boeing's Q1 Earnings Top Estimates, Revenues Decline Y/Y
The Boeing Company incurred an adjusted loss of $1.13 per share in first-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of $1.43. The bottom line also improved from the year-ago quarter’s reported loss of $1.27 per share.
Including one-time items, the company reported a GAAP loss of 56 cents per share, narrower than the year-ago quarter’s reported loss of 69 cents.
Revenues
Boeing’s revenues amounted to $16.57 billion, which missed the Zacks Consensus Estimate of $17.69 billion by 6.3%. The top line also declined 8% from the year-ago quarter’s reported figure of $17.92 billion.
The year-over-year deterioration can be attributed to lower commercial delivery volume.
Total Backlog
Backlog at the end of the first quarter of 2024 totaled $528.75 billion, up from $520.20 billion recorded at the end of the fourth quarter 2023.
Segmental Performances
Commercial Airplane: Revenues in this segment declined 31% year over year to $4.65 billion, due to lower 737 deliveries. The segment incurred an operating loss of $1.14 billion, indicating a deterioration from the year-ago quarter’s reported operating loss of $615 million.
During the quarter under review, Boeing delivered 83 commercial planes, down 36% year over year.
The backlog for this segment remained healthy, with more than 5,600 airplanes valued at $448 billion.
Boeing Defense, Space & Security (BDS): The segment recorded revenues of $6.95 billion, indicating a year-over-year improvement of 6%. It generated an operating income of $151 million, implying an improvement from the year-ago quarter’s reported operating loss of $212 million.
BDS recorded a backlog of $61 billion, 31% of which comprised orders from international clients.
Global Services: Revenues in this segment improved 7% year over year to $5.05 billion, driven by higher commercial volume. This unit generated an operating income of $916 million compared with $847 million in the prior-year quarter.
Financial Condition
Boeing exited first-quarter 2024 with cash and cash equivalents of $6.91 billion, and short-term and other investments of $0.62 billion. At the end of 2023, the company had cash and cash equivalents of $12.69 billion, and short-term and other investments worth $3.27 billion. Long-term debt amounted to $46.88 billion, down from $47.10 billion recorded at the end of 2023.
The company’s operating cash outflow as of Mar 31, 2024, was $3,362 million compared with $318 million as of Mar 31, 2023.
Free cash outflow totaled $3.93 billion at the end of first-quarter 2024 compared with $786 million at the end of first-quarter 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -395.35% 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. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Performance of an Industry Player
Boeing is part of the Zacks Aerospace - Defense industry. Over the past month, RTX (RTX - Free Report) , a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended March 2024 more than a month ago.
RTX reported revenues of $19.31 billion in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $1.34 for the same period compares with $1.22 a year ago.
RTX is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of -0.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for RTX. Also, the stock has a VGM Score of D.