Home Stock Boeing hits 17-month low on ‘messier-than-expected’ Q1

Boeing hits 17-month low on ‘messier-than-expected’ Q1


Boeing Co (NYSE: BA) slid more than 10% on Wednesday to a 17-month low after reporting broadly disappointing results for its fiscal first quarter on weakness in commercial and defense.

Notable figures in Boeing Q1 earnings report

Net loss widened by more than 100% to $1.24 billion in Q1.Per-share loss of $2.06 was much worse than last year’s 92 cents.Adjusted for one-time items, Boeing lost $2.75 per share.Revenue sunk 8.1% YoY to $13.99 billion, as per the earnings press release.FactSet consensus was for 25 cents of per-share loss on $16.02 billion in revenue.Commercial Airplanes slid 2.5% to miss Street expectations.Defense, Space & Security tanked 23.6%, also below estimates.A 15.1% growth in Global Services revenue was above analysts’ forecast.

According to Boeing, it had negative $3.57 billion in free cash flow, better than last year’s negative $3.68 billion, but still below negative $2.92 billion that analysts had forecast.

Highlights from CEO Calhoun’s interview on CNBC

Discussing the earnings report with CNBC’s Phil LeBeau on “Squawk on the Street”, CEO Dave Calhoun said:

Messier quarter than we would have liked. Familiar themes, supply chain constraints, COVID, inflation, have disproportionate impact on our company in one specific area; that’s our fixed price development contracts we do with our defense business.

The stock is now down a little under 30% for the year. Revenue from Commercial Airplanes, as per the American multinational, also took a hit due to the delay in wide-body aircraft deliveries. Commenting on inflationary pressures, the chief executive said:

We have more time than most because we’re long cycle business. Our contracts protect us to some extent. The second year when inflation begins to take a toll on consumers’ pocket, that’s when those numbers really matter to us. We’ll see if it causes a slowdown before we think about medium to long term pricing strategies.

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