Boeing Reports Wider Loss, Surprise Revenue Decline Amid Ongoing Jet Delays

Boeing (BA) reported a big Q1 loss and weaker-than-expected revenue, amid higher costs and ongoing delays to key jets.

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The Dow Jones aerospace giant said it’ll ramp up 737 Max production in the current Q2. But it pushed back production and deliveries for its 777X.

Boeing already warned that it expects Q1 to be the year’s weakest quarter for deliveries, revenue, earnings and cash flow.

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Boeing Earnings

Estimates: Analysts polled by FactSet expected Boeing to narrow losses to 25 cents per share from a loss of $1.53 a year ago. Revenue was seen up 5% to $16.021 billion.

Results: Boeing widened its loss to $2.75 a share while revenue fell 8% to $13.99 billion.

In Q1, Boeing has already disclosed that it delivered 95 commercial jets and 41 defense jets. That tally included one F-15 fighter jet, 86 Boeing 737 jets and no 787 jets.

Reuters reported on April 20 that Boeing has advised key airlines and parts suppliers that 787 deliveries would resume in the second half of 2022, after they were halted over structural flaws.

Outlook: Analysts expect Boeing to swing to earnings of $2.82 per share in all of 2022 from a loss of $9.44 a year ago, FactSet says.

Boeing said it will boost 737 Max production to 31 a month in Q2. It noted that it had submitted a plan with the FAA aiming to restart 787 Dreamliner shipments later this year. But it halted production of the 777X jet through 2023 and delayed deliveries by a year to 2025.

Boeing Stock

Shares fell nearly 4% in early Wednesday stock market trading, well below the 50-day moving average. Boeing sits even further under the 200-day average, and its relative strength line shows serious lag. Archrival Airbus (EADSY) also remains mired below its 50- and 200-day lines.

On Tuesday, key Boeing jet-engine suppliers General Electric (GE) and Raytheon Technologies (GE) warned of new headwinds from the Russia-Ukraine war and the Covid resurgence in China.

Raytheon cut 2022 revenue while GE guided EPS to the low end of its forecast. RTX stock edged lower Wednesday, while GE stock plunged more than 10%.

Last week, Lockheed Martin (LMT) earnings took a hit from supply disruptions due to the Covid-19 omicron variant and rising inflation.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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