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Boeing Q3 Earnings Lag Estimates, Revenues Decrease Y/Y
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The Boeing Company (BA - Free Report) incurred an adjusted loss of $10.44 per share in the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of $10.34. The bottom line deteriorated from the year-ago quarter’s reported loss of $3.26 per share.
Including one-time items, the company reported a GAAP loss of $9.97 per share, wider than the year-ago quarter’s reported loss of $2.70.
The year-over-year deterioration can be attributed to the adverse impacts of the International Association of Machinists and Aerospace Workers (IAM) work stoppage and previously announced charges on commercial and defense programs.
The Boeing Company Price, Consensus and EPS Surprise
Revenues amounted to $17.84 billion, which came in line with the Zacks Consensus Estimate. The top line also decreased 1% from the year-ago reported figure of $18.10 billion.
The year-over-year deterioration was due to dismal performance by the Commercial Airplanes segment.
Total Backlog
Backlog at the end of the third quarter of 2024 totaled $510.51 billion, down from $515.87 billion recorded at the end of the second quarter.
Segmental Performances
Commercial Airplane: Revenues in this segment declined 5% year over year to $7.44 billion, reflecting the impact of the IAM work stoppage. The segment incurred an operating loss of $4.02 billion, indicating a deterioration from the year-ago quarter’s reported operating loss of $0.68 billion. This was due to pre-tax charges of $3 billion from the 777X and 767 programs as well as higher period expenses.
During the quarter under review, Boeing delivered 116 commercial planes. The figure rose 10% year over year.
The backlog for this segment remained healthy, with more than 5,400 airplanes valued at $428 billion.
Boeing Defense, Space & Security (“BDS”): The segment recorded revenues of $5.54 billion, indicating a year-over-year rise of 1%. It incurred an operating loss of $2.38 billion, implying a deterioration from the year-ago quarter’s operating loss of $0.92 billion. This deterioration was due to pre-tax charges of $2 billion from the T-7A, KC-46A Tanker, Commercial Crew, and MQ-25 programs.
BDS recorded a backlog of $62 billion, 28% of which comprised orders from international clients.
Global Services: Revenues in this segment improved 2% year over year to $4.90 billion, driven by higher commercial volume. This unit generated an operating income of $834 million, which improved from $784 million in the prior-year quarter.
Financial Condition
Boeing exited third-quarter 2024 with cash and cash equivalents of $9.96 billion, and short-term and other investments of $0.51 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 $53.18 billion, up from $47.10 billion recorded at the end of 2023.
The company’s operating cash outflow as of Sept. 30, 2024, was $8.63 billion against operating cash inflow of $2.58 billion as of Sept. 30, 2023.
Free cash outflow totaled $10.21 billion at the end of third-quarter 2024 against free cash inflow of $1.48 billion at the end of third-quarter 2023.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2024 adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago figure of 38 cents. The bottom line also surpassed the Zacks Consensus Estimate by 2.2%.
In the third quarter, the company’s net sales totaled $456.5 million, which beat the Zacks Consensus Estimate of $456.2 million by 0.1%. The top line also witnessed an improvement of 8.8% from the year-ago quarter’s reported sales of $419.5 million.
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2024 adjusted earnings of $6.84 per share, which beat the Zacks Consensus Estimate of $6.47 by 5.7%. The bottom line also rose 1% from the year-ago quarter's recorded figure of $6.77.
Net sales were $17.10 billion, which missed the Zacks Consensus Estimate of $17.28 billion by 1%. The top line, however, increased 1.3% from $16.88 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) third-quarter 2024 adjusted earnings per share of $1.45 beat the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago quarter’s level of $1.25.
RTX’s third-quarter sales totaled $20.09 billion, which surpassed the Zacks Consensus Estimate of $19.91 billion by 0.9%. The top line also surged a solid 49.2% from $13.46 billion recorded in the third quarter of 2023.
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Boeing Q3 Earnings Lag Estimates, Revenues Decrease Y/Y
The Boeing Company (BA - Free Report) incurred an adjusted loss of $10.44 per share in the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of $10.34. The bottom line deteriorated from the year-ago quarter’s reported loss of $3.26 per share.
Including one-time items, the company reported a GAAP loss of $9.97 per share, wider than the year-ago quarter’s reported loss of $2.70.
The year-over-year deterioration can be attributed to the adverse impacts of the International Association of Machinists and Aerospace Workers (IAM) work stoppage and previously announced charges on commercial and defense programs.
The Boeing Company Price, Consensus and EPS Surprise
The Boeing Company price-consensus-eps-surprise-chart | The Boeing Company Quote
Revenues
Revenues amounted to $17.84 billion, which came in line with the Zacks Consensus Estimate. The top line also decreased 1% from the year-ago reported figure of $18.10 billion.
The year-over-year deterioration was due to dismal performance by the Commercial Airplanes segment.
Total Backlog
Backlog at the end of the third quarter of 2024 totaled $510.51 billion, down from $515.87 billion recorded at the end of the second quarter.
Segmental Performances
Commercial Airplane: Revenues in this segment declined 5% year over year to $7.44 billion, reflecting the impact of the IAM work stoppage. The segment incurred an operating loss of $4.02 billion, indicating a deterioration from the year-ago quarter’s reported operating loss of $0.68 billion. This was due to pre-tax charges of $3 billion from the 777X and 767 programs as well as higher period expenses.
During the quarter under review, Boeing delivered 116 commercial planes. The figure rose 10% year over year.
The backlog for this segment remained healthy, with more than 5,400 airplanes valued at $428 billion.
Boeing Defense, Space & Security (“BDS”): The segment recorded revenues of $5.54 billion, indicating a year-over-year rise of 1%. It incurred an operating loss of $2.38 billion, implying a deterioration from the year-ago quarter’s operating loss of $0.92 billion. This deterioration was due to pre-tax charges of $2 billion from the T-7A, KC-46A Tanker, Commercial Crew, and MQ-25 programs.
BDS recorded a backlog of $62 billion, 28% of which comprised orders from international clients.
Global Services: Revenues in this segment improved 2% year over year to $4.90 billion, driven by higher commercial volume. This unit generated an operating income of $834 million, which improved from $784 million in the prior-year quarter.
Financial Condition
Boeing exited third-quarter 2024 with cash and cash equivalents of $9.96 billion, and short-term and other investments of $0.51 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 $53.18 billion, up from $47.10 billion recorded at the end of 2023.
The company’s operating cash outflow as of Sept. 30, 2024, was $8.63 billion against operating cash inflow of $2.58 billion as of Sept. 30, 2023.
Free cash outflow totaled $10.21 billion at the end of third-quarter 2024 against free cash inflow of $1.48 billion at the end of third-quarter 2023.
Zacks Rank
Boeing currently carries a Zacks Rank #4 (Sell).
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 2024 adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago figure of 38 cents. The bottom line also surpassed the Zacks Consensus Estimate by 2.2%.
In the third quarter, the company’s net sales totaled $456.5 million, which beat the Zacks Consensus Estimate of $456.2 million by 0.1%. The top line also witnessed an improvement of 8.8% from the year-ago quarter’s reported sales of $419.5 million.
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2024 adjusted earnings of $6.84 per share, which beat the Zacks Consensus Estimate of $6.47 by 5.7%. The bottom line also rose 1% from the year-ago quarter's recorded figure of $6.77.
Net sales were $17.10 billion, which missed the Zacks Consensus Estimate of $17.28 billion by 1%. The top line, however, increased 1.3% from $16.88 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) third-quarter 2024 adjusted earnings per share of $1.45 beat the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago quarter’s level of $1.25.
RTX’s third-quarter sales totaled $20.09 billion, which surpassed the Zacks Consensus Estimate of $19.91 billion by 0.9%. The top line also surged a solid 49.2% from $13.46 billion recorded in the third quarter of 2023.