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Boeing's (BA) Q4 Earnings Miss Estimates, Revenues Beat

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The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.75 per share for fourth-quarter 2022 in contrast to the Zacks Consensus Estimate of earnings of 5 cents. The bottom line, however, improved from the year-ago quarter’s loss of $7.69 per share.

The year-over-year upside can be attributed to improved commercial aerospace volumes.

Including one-time items, the company posted GAAP loss of $1.06 per share compared with a loss of $7.02 per share reported in the fourth quarter of 2021.

For full-year 2022, the company reported adjusted loss of $11.06 per share, which deteriorated from the year-ago loss figure of $9.44. The full-year bottom line also came in wider when compared with the Zacks Consensus Estimate of a loss of $8.88 per share.

Our model projected adjusted loss of 64 cents per share for the fourth quarter and $9.94 per share for 2022.

The Boeing Company Price, Consensus and EPS Surprise

The Boeing Company Price, Consensus and EPS Surprise

The Boeing Company price-consensus-eps-surprise-chart | The Boeing Company Quote

Revenues

In the quarter under review, Boeing’s revenues amounted to $19.98 billion, which surpassed the Zacks Consensus Estimate of $19.43 billion by 2.8%. The top line also improved 35% from the year-ago quarter’s figure of $14.79 billion.

This improvement was driven by higher year-over-year revenues registered by the company’s Commercial Airplanes, Global Services as well as Defense, Space & Security business units.

For full-year 2022, the company recorded revenues worth $66.61 billion, up 6.9% from 2021’s reported figure. The full-year revenues also beat the Zacks Consensus Estimate of $66.05 billion.

Our model projected net sales of $16.91 billion for the fourth quarter and $63.54 billion for 2022.

Total Backlog

Backlog at the end of fourth-quarter 2022 increased to $404.38 billion from $381.32 billion at the end of third-quarter 2022.

Segmental Performances

Commercial Airplane: Revenues at this segment increased 94% year over year to $9.22 billion, driven by higher 737 and 787 deliveries. The segment incurred an operating loss of $626 million, compared with a loss of $4,454 million in the year-ago quarter.

Boeing delivered 152 commercial planes during the quarter under review, up 54% year over year.

The backlog for this segment remained healthy, with more than 4,500 airplanes valued at $330 billion.

Boeing Defense, Space & Security (BDS): This segment recorded revenues worth $6.18 billion in the fourth quarter, indicating a year-over-year increase of 5%, driven by improved deliveries. Meanwhile, this unit recorded an operating income of $112 million against an operating loss of $255 million in the year-ago quarter.

The backlog at BDS was $54 billion, 28% of which comprised orders from international clients.

Global Services: Revenues at this segment improved 6% to $4.57 billion on account of higher commercial services volume. This unit generated an operating income of $634 million, compared with $401 million in the year-ago quarter.

Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $49 million, compared with $63 million in the year-ago quarter.

At the end of fourth-quarter 2022, BCC's portfolio balance was $1.5 billion.

Financial Condition

Boeing exited 2022 with cash and cash equivalents of $14.61 billion and short-term and other investments of $2.61 billion. At the end of 2021, the company had $8.05 billion of cash and cash equivalents and $8.19 billion of short-term and other investments. Long-term debt amounted to $51.81 billion at the end of 2022, down from $56.81 billion at the end of 2021.

The company’s operating cash inflow as of Dec 31, 2022 was $3.51 billion against cash outflow of $3.42 billion at the end of 2021.

Free cashflow totaled $2.29 billion at the end of 2022 against free cash outflow of $4.40 billion at the end of 2021.

Zacks Rank

Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2022 adjusted earnings of $7.79 per share, which surpassed the Zacks Consensus Estimate of $7.41 per share by 5.1%. The bottom line also improved 7.9% year over year.

In the reported quarter, net sales amounted to $19 billion, which surpassed the Zacks Consensus Estimate of $18.25 billion by 4.1%. The top line rose 7.3% from $17.7 billion reported in the year-ago quarter.

Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share (EPS) of $1.27 beat the Zacks Consensus Estimate of $1.24 per share by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s tally.

Raytheon Technologies’ fourth-quarter sales of $18,093 million missed the Zacks Consensus Estimate of $18,196 million by 0.6%. The sales figure, however, rose 6% from $17,044 million recorded in the year-ago quarter.

General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2022 EPS of $3.58, which beat the Zacks Consensus Estimate of $3.53 per share by 1.4%. Quarterly earnings increased 5.6% from $3.39 per share in the year-ago quarter.

General Dynamics’ fourth-quarter revenues of $10,851 million beat the Zacks Consensus Estimate of $10,674 million by 1.7%. Revenues also improved 5.4% from the year-ago quarter.

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