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Boeing's (BA) Q1 Earnings Miss Estimates, Revenues Beat
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The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.27 per share for first-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. The bottom line, however, improved from the year-ago quarter’s loss of $2.75 per share.
The year-over-year upside can be attributed to improved commercial aerospace volume.
Including one-time items, the company reported GAAP loss of 69 cents per share, narrower than the year-ago quarter’s reported loss of $2.06.
Revenues
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.
This improvement was driven by higher year-over-year revenues registered by the company’s Commercial Airplanes, Global Services and Defense, Space & Security business units.
The Boeing Company Price, Consensus and EPS Surprise
Backlog at the end of the first quarter was $411.45 billion, up from $404.38 billion recorded at the end of fourth-quarter 2022.
Segmental Performances
Commercial Airplane: Revenues at this segment increased 60% year over year to $6.70 billion, driven by higher 737 and 787 deliveries. The segment incurred an operating loss of $615 million compared with an operating loss of $897 million in the year-ago quarter.
Boeing delivered 130 commercial planes during the quarter under review, up 37% year over year.
The backlog for this segment remained healthy, with more than 4,500 airplanes valued at $334 billion.
Boeing Defense, Space & Security (BDS): The segment recorded revenues of $6.54 billion, indicating a year-over-year increase of 19%. This was primarily driven by improved deliveries. The unit incurred an operating loss of $212 million compared with an operating loss of $929 million in the year-ago quarter.
The backlog at BDS was $58 billion, 30% of which comprised of orders from international clients.
Global Services: Revenues at this segment improved 9% to $4.72 billion on account of higher commercial services volume and favorable mix. This unit generated an operating income of $847 million compared with $632 million in the prior-year quarter.
Boeing Capital Corporation (BCC): This segment reported negative quarterly revenues of $42 million.
Financial Condition
Boeing exited first-quarter 2023 with cash and cash equivalents of $10.81 billion, and short-term and other investments of $3.96 billion. At the end of 2022, the company had cash and cash equivalents of $14.61 billion, and short-term and other investments of $2.61 billion. Long-term debt amounted to $47.47 billion at the end of the first quarter, down from $51.81 billion recorded at the end of 2022.
The company’s operating cash outflow as of Mar 31, 2023, was $318 million compared with $3.22 billion at the end of 2022.
Free cash outflow totaled $786 million at the end of first-quarter 2023 compared with $3.57 billion at the end of first-quarter 2022.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2023 adjusted earnings of $6.43 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 5.9%. However, the bottom line was in line with the year-ago quarter's recorded figure.
Net sales amounted to $15.13 billion, which beat the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line rose 1.1% from $14.96 billion in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 28.2%. The bottom line improved massively from the year-ago quarter’s earnings of 22 cents per share, indicating a solid 127.3% improvement.
In the first quarter, net sales totaled $458 million, which beat the Zacks Consensus Estimate of $428 million by 6.8%. Also, the top line witnessed growth of 17.2% from the year-ago quarter’s $391 million.
Raytheon Technologies Corporation’s (RTX - Free Report) first-quarter 2023 adjusted earnings per share of $1.22 beat the Zacks Consensus Estimate of $1.11 by 9.9%. The bottom line also improved 6% from the year-ago quarter’s adjusted earnings of $1.15 per share.
Raytheon Technologies’ sales of $17,214 million beat the Zacks Consensus Estimate of $16,857 million by 2.1%. The figure also rose 9.5% from $15,716 million recorded in the year-ago quarter.
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Boeing's (BA) Q1 Earnings Miss Estimates, Revenues Beat
The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.27 per share for first-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 98 cents. The bottom line, however, improved from the year-ago quarter’s loss of $2.75 per share.
The year-over-year upside can be attributed to improved commercial aerospace volume.
Including one-time items, the company reported GAAP loss of 69 cents per share, narrower than the year-ago quarter’s reported loss of $2.06.
Revenues
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion by 3.3%. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion.
This improvement was driven by higher year-over-year revenues registered by the company’s Commercial Airplanes, Global Services and Defense, Space & Security business units.
The Boeing Company Price, Consensus and EPS Surprise
The Boeing Company price-consensus-eps-surprise-chart | The Boeing Company Quote
Total Backlog
Backlog at the end of the first quarter was $411.45 billion, up from $404.38 billion recorded at the end of fourth-quarter 2022.
Segmental Performances
Commercial Airplane: Revenues at this segment increased 60% year over year to $6.70 billion, driven by higher 737 and 787 deliveries. The segment incurred an operating loss of $615 million compared with an operating loss of $897 million in the year-ago quarter.
Boeing delivered 130 commercial planes during the quarter under review, up 37% year over year.
The backlog for this segment remained healthy, with more than 4,500 airplanes valued at $334 billion.
Boeing Defense, Space & Security (BDS): The segment recorded revenues of $6.54 billion, indicating a year-over-year increase of 19%. This was primarily driven by improved deliveries. The unit incurred an operating loss of $212 million compared with an operating loss of $929 million in the year-ago quarter.
The backlog at BDS was $58 billion, 30% of which comprised of orders from international clients.
Global Services: Revenues at this segment improved 9% to $4.72 billion on account of higher commercial services volume and favorable mix. This unit generated an operating income of $847 million compared with $632 million in the prior-year quarter.
Boeing Capital Corporation (BCC): This segment reported negative quarterly revenues of $42 million.
Financial Condition
Boeing exited first-quarter 2023 with cash and cash equivalents of $10.81 billion, and short-term and other investments of $3.96 billion. At the end of 2022, the company had cash and cash equivalents of $14.61 billion, and short-term and other investments of $2.61 billion. Long-term debt amounted to $47.47 billion at the end of the first quarter, down from $51.81 billion recorded at the end of 2022.
The company’s operating cash outflow as of Mar 31, 2023, was $318 million compared with $3.22 billion at the end of 2022.
Free cash outflow totaled $786 million at the end of first-quarter 2023 compared with $3.57 billion at the end of first-quarter 2022.
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 Release
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2023 adjusted earnings of $6.43 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 5.9%. However, the bottom line was in line with the year-ago quarter's recorded figure.
Net sales amounted to $15.13 billion, which beat the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line rose 1.1% from $14.96 billion in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 28.2%. The bottom line improved massively from the year-ago quarter’s earnings of 22 cents per share, indicating a solid 127.3% improvement.
In the first quarter, net sales totaled $458 million, which beat the Zacks Consensus Estimate of $428 million by 6.8%. Also, the top line witnessed growth of 17.2% from the year-ago quarter’s $391 million.
Raytheon Technologies Corporation’s (RTX - Free Report) first-quarter 2023 adjusted earnings per share of $1.22 beat the Zacks Consensus Estimate of $1.11 by 9.9%. The bottom line also improved 6% from the year-ago quarter’s adjusted earnings of $1.15 per share.
Raytheon Technologies’ sales of $17,214 million beat the Zacks Consensus Estimate of $16,857 million by 2.1%. The figure also rose 9.5% from $15,716 million recorded in the year-ago quarter.