A month has gone by since the last earnings report for Boeing (BA Quick QuoteBA - Free Report) . Shares have lost about 2.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Boeing due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Boeing's Q4 Earnings Miss Estimates, Revenues Beat

The Boeing Company 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.

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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -279.22% due to these changes.

VGM Scores

Currently, Boeing has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Boeing has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Boeing is part of the Zacks Aerospace - Defense industry. Over the past month, Lockheed Martin (LMT Quick QuoteLMT - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended December 2022 more than a month ago.

Lockheed reported revenues of $18.99 billion in the last reported quarter, representing a year-over-year change of +7.1%. EPS of $7.79 for the same period compares with $7.24 a year ago.

For the current quarter, Lockheed is expected to post earnings of $6.18 per share, indicating a change of -4% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.8% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Lockheed. Also, the stock has a VGM Score of B.