Boeing reported mixed first-quarter results early Wednesday. BA stock rose toward a buy point.
The aerospace and defense giant narrowed its quarterly loss vs. a year earlier and cuts its free cash outflow to half of analyst expectations. Per-share losses were still higher than expected, but the company held its full-year guidance steady, despite production setbacks to the top-selling 737 Max jet during the quarter.
On April 14, the Dow Jones aviation giant warned of delays to 737 Max plane deliveries, worsening aircraft shortages for global airlines. The issue was tied to fuselages supplied by Spirit AeroSystems.
Boeing Earnings
Estimates: Analysts polled by FactSet expected Boeing to post a net loss of $1.07 per share for the first quarter, vs. a loss of $2.75 a year ago. Revenue was seen growing 25% to $17.516 billion.
Results: Losses came in at $1.27 per share, below views. Revenue jumped a better-than-expected 28%, to $17.9 billion. Negative free cash flow narrowed to $786 million, vs. a year-ago outflow of $3.57 billion. Cash and marketable securities declined about 14%, to $14.8 billion.
Outlook: Wall Street expects Boeing to lose 62 cents per share for the full year vs. a loss of $11.06 in 2022.
BA Stock
Shares of Boeing closed 0.4% higher at 203.03 on the stock market today. BA stock has advanced 6% year to date. After nearly doubling from late September to mid-February, it has spent most of the year in a flat base with a 221.43 buy point.
Boeing Jet Deliveries Jump
Boeing's commercial aircraft unit booked a 60% gain in revenue for the quarter. It delivered 130 airplanes during Q1, capped by a strong March and beating rival Airbus by three jets.
Operating margins were negative, at minus 9.2%, improved from a minus 21.4% result a year ago.
Boeing's deliveries jumped almost 27% vs. a year ago, when it delivered 95 jets. The Dow Jones aviation and defense giant is looking to deliver at least 400 737 Maxs and 70 787s in 2023.
The company now says it plans to deliver 38 jets per month for the remainder of the year, up from its prior monthly target of 31 aircraft. If achieved, the pace would be the manufacturer's quickest pace in years, helping it meet rebounding demand across the industry.
"This is an important year for us," said CEO Dave Calhoun in a statement on Wednesday. "As demand surges across our markets, we must focus together on execution and meeting our customer commitments."
Boeing is on track to meet its bestselling 737 Max jet delivery target, with 113 deliveries so far this year. But it's trailing on the 787, having only delivered 11 thus far. The company on Wednesday boosted its monthly target for 787s to five planes, up from its current rate of three per month.
General Electric supplies the 737 and 787 Dreamliner engines.
Fresh 737 Max Setback
Boeing is planning to ramp up production of the bestselling Boeing 737 Max after a series of challenges. But the fuselage issue is a fresh setback.
In China, Boeing could resume 737 Max deliveries after an extended halt, Reuters reported April 21.
When Boeing reports Q1 earnings, investors will look for any falloff in demand amid recession fears.
