Boeing Shares Rise After Q1 Results, Emphasizing Quality and Safety Commitment
Revenue Declines, Earnings Beat Consensus
Boeing’s first-quarter fiscal 2024 results were a mixed bag, with revenue declining 8% year-over-year to $16.569 billion. This was primarily due to lower commercial deliveries and the grounding of the 737-9. However, the company managed to beat consensus estimates for both revenue and adjusted loss per share.
Adjusted loss per share contracted to $(1.13) from $(1.27) in the same quarter of 2023, surpassing the consensus of $(1.76). This improvement was attributed to cost-cutting measures and improved operating efficiency.
CEO Emphasizes Quality and Safety
Boeing CEO Dave Calhoun emphasized the company’s commitment to enhancing its quality and safety systems. He stated that these efforts are crucial for ensuring a more stable future for the company. Boeing recorded an adjusted operating loss of $(388) million for the quarter, compared to $(440) million a year ago.
Commercial Airplanes Revenue Falls
Commercial Airplanes revenue fell 31% YoY to $4.65 billion, largely due to lower deliveries. During the quarter, Commercial Airplanes booked 125 net orders, bringing the total backlog to over 5,600 airplanes valued at $448 billion.
Defense, Space & Security Revenue Rises
Defense, Space & Security revenue, on the other hand, increased 6% Y/Y to $6.95 billion. The backlog for this segment stood at $61 billion, with 31% of orders coming from non-U.S. customers.
Global Services Revenue Grows
Global Services revenue grew 7% Y/Y to $5.045 billion. The operating margin expanded 30 bps to 18.2%, reflecting higher commercial volume and mix.
Financial Highlights
Boeing’s operating cash outflow for the quarter totaled $(3.362) billion, compared to $(318) million YoY. Free cash outflow was $(3.9) billion. Cash and investments in marketable securities totaled $7.5 billion at the end of the quarter.
Advance Payment to Spirit Aerosystems
In other news, Boeing announced an advance payment of $425 million to Spirit Aerosystems. This payment is intended to support Spirit’s increased inventory levels and reduced cash flow due to FAA restrictions.
Stock Performance
BA shares are trading higher by 4.01% at $175.97 premarket at the last check Wednesday.
