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Why Is Boeing (BA) Down 3.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Boeing (BA - Free Report) . Shares have lost about 3.4% 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 its most recent earnings report in order to get a better handle on the important drivers.
Boeing's Q2 Earnings Miss Estimates, Revenues Decline Y/Y
The Boeing Company incurred an adjusted loss of $2.90 per share in second-quarter 2024, wider than the Zacks Consensus Estimate of a loss of $1.79. The bottom line also deteriorated from the year-ago quarter’s reported loss of 82 cents per share.
Including one-time items, the company reported a GAAP loss of $2.33 per share, wider than the year-ago quarter’s reported loss of 25 cents.
The year-over-year deterioration can be attributed to lower commercial delivery volume and losses on fixed-price defense development programs.
Revenues
Boeing’s revenues amounted to $16.87 billion, which missed the Zacks Consensus Estimate of $17.48 billion by 3.5%. The top line also declined 15% from the year-ago quarter’s reported figure of $19.75 billion.
The year-over-year deterioration was due to lower commercial delivery volume.
Total Backlog
Backlog at the end of the second quarter of 2024 totaled $515.87 billion, down from $528.75 billion recorded at the end of the first quarter.
Segmental Performances
Commercial Airplane: Revenues in this segment declined 32% year over year to $6 billion due to lower commercial jet deliveries. The segment incurred an operating loss of $715 million, indicating a deterioration from the year-ago quarter’s reported operating loss of $383 million.
During the quarter under review, Boeing delivered 92 commercial planes, down 32.3% year over year.
The backlog for this segment remained healthy, with more than 5,400 airplanes valued at $437 billion.
Boeing Defense, Space & Security (“BDS”): The segment recorded revenues of $6.02 billion, indicating a year-over-year decline of 2%. It generated an operating income of $913 million, implying a deterioration from the year-ago quarter’s reported operating loss of $527 million.
BDS recorded a backlog of $59 billion, 31% of which comprised orders from international clients.
Global Services: Revenues in this segment improved 3% year over year to $4.89 billion, driven by higher commercial volume. This unit generated an operating income of $870 million, which improved from $856 million in the prior-year quarter.
Financial Condition
Boeing exited second-quarter 2024 with cash and cash equivalents of $10.89 billion, and short-term and other investments of $1.73 billion. At the end of 2023, the company had cash and cash equivalents of $12.69 billion, and short-term and other investments worth $3.27 billion.
Long-term debt amounted to $53.16 billion, up from $47.10 billion recorded at the end of 2023.
The company’s operating cash outflow as of Jun 30, 2024, was $7.29 billion against operating cash inflow worth $2.56 billion as of Jun 30, 2023.
Free cash outflow totaled $8.26 billion at the end of second-quarter 2024 against free cash inflow of $1.79 billion at the end of second-quarter 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -409.35% due to these changes.
VGM Scores
Currently, Boeing has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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, General Dynamics (GD - Free Report) , a stock from the same industry, has gained 1.5%. The company reported its results for the quarter ended June 2024 more than a month ago.
General Dynamics reported revenues of $11.98 billion in the last reported quarter, representing a year-over-year change of +18%. EPS of $3.26 for the same period compares with $2.70 a year ago.
For the current quarter, General Dynamics is expected to post earnings of $3.76 per share, indicating a change of +23.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
General Dynamics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Why Is Boeing (BA) Down 3.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Boeing (BA - Free Report) . Shares have lost about 3.4% 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 its most recent earnings report in order to get a better handle on the important drivers.
Boeing's Q2 Earnings Miss Estimates, Revenues Decline Y/Y
The Boeing Company incurred an adjusted loss of $2.90 per share in second-quarter 2024, wider than the Zacks Consensus Estimate of a loss of $1.79. The bottom line also deteriorated from the year-ago quarter’s reported loss of 82 cents per share.
Including one-time items, the company reported a GAAP loss of $2.33 per share, wider than the year-ago quarter’s reported loss of 25 cents.
The year-over-year deterioration can be attributed to lower commercial delivery volume and losses on fixed-price defense development programs.
Revenues
Boeing’s revenues amounted to $16.87 billion, which missed the Zacks Consensus Estimate of $17.48 billion by 3.5%. The top line also declined 15% from the year-ago quarter’s reported figure of $19.75 billion.
The year-over-year deterioration was due to lower commercial delivery volume.
Total Backlog
Backlog at the end of the second quarter of 2024 totaled $515.87 billion, down from $528.75 billion recorded at the end of the first quarter.
Segmental Performances
Commercial Airplane: Revenues in this segment declined 32% year over year to $6 billion due to lower commercial jet deliveries. The segment incurred an operating loss of $715 million, indicating a deterioration from the year-ago quarter’s reported operating loss of $383 million.
During the quarter under review, Boeing delivered 92 commercial planes, down 32.3% year over year.
The backlog for this segment remained healthy, with more than 5,400 airplanes valued at $437 billion.
Boeing Defense, Space & Security (“BDS”): The segment recorded revenues of $6.02 billion, indicating a year-over-year decline of 2%. It generated an operating income of $913 million, implying a deterioration from the year-ago quarter’s reported operating loss of $527 million.
BDS recorded a backlog of $59 billion, 31% of which comprised orders from international clients.
Global Services: Revenues in this segment improved 3% year over year to $4.89 billion, driven by higher commercial volume. This unit generated an operating income of $870 million, which improved from $856 million in the prior-year quarter.
Financial Condition
Boeing exited second-quarter 2024 with cash and cash equivalents of $10.89 billion, and short-term and other investments of $1.73 billion. At the end of 2023, the company had cash and cash equivalents of $12.69 billion, and short-term and other investments worth $3.27 billion.
Long-term debt amounted to $53.16 billion, up from $47.10 billion recorded at the end of 2023.
The company’s operating cash outflow as of Jun 30, 2024, was $7.29 billion against operating cash inflow worth $2.56 billion as of Jun 30, 2023.
Free cash outflow totaled $8.26 billion at the end of second-quarter 2024 against free cash inflow of $1.79 billion at the end of second-quarter 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -409.35% due to these changes.
VGM Scores
Currently, Boeing has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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, General Dynamics (GD - Free Report) , a stock from the same industry, has gained 1.5%. The company reported its results for the quarter ended June 2024 more than a month ago.
General Dynamics reported revenues of $11.98 billion in the last reported quarter, representing a year-over-year change of +18%. EPS of $3.26 for the same period compares with $2.70 a year ago.
For the current quarter, General Dynamics is expected to post earnings of $3.76 per share, indicating a change of +23.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
General Dynamics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.