Boeing Q1 2022 Earnings Report Recap

BA missed on earnings and on revenue

Key Takeaways

  • Boeing delivered 95 commercial airplanes in Q1, missing analyst estimates.
  • Commercial airplane deliveries were hit hard during the COVID-19 pandemic as air travel demand collapsed, but as that demand has begun to pick up, so too has demand for commercial airplanes.
  • Boeing has submitted its certification plan to the FAA regarding the return to service of its 787 jetliner.
Boeing Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted EPS Miss  -$2.75 -$0.45
Revenue Miss $14.0B $16.1B
Commercial Airplane Deliveries Miss 95  101

Source: Predictions based on analysts' consensus from Visible Alpha

Boeing (BA) Financial Results: Analysis

The Boeing Company (BA) reported Q1 FY 2022 earnings that dramatically missed analysts' consensus estimates. The company reported an adjusted loss per share that was significantly wider than analysts had forecast. Boeing said that the loss partly reflected costs related to impacts from the war in Ukraine. Revenue also came in well below expectations, falling 8.1% year over year (YOY). Analysts had predicted revenue to rise 5.7% YOY. Boeing delivered 95 commercial airplanes, which it reported earlier this month. That number also came in below analysts' estimates.

The company's shares fell more than 4% in pre-market trading. Over the past year, Boeing's shares have provided a total return of -30.8%, well below the S&P 500's total return of -0.3%.

BA Commercial Airplane Deliveries

Boeing's commercial airplane deliveries rose 23.4% compared to the year-ago quarter. Boeing manufactures both commercial and military aircraft. Demand for the former type is much more sensitive to economic conditions, whereas demand for the latter depends on government policy decisions regarding military programs. It should be noted that the commercial airplane deliveries figure is a lagging indicator of demand since it is based on past rather than current orders for aircraft.

Demand for Boeing's commercial airplanes has been devastated in recent years by the pandemic's impact on the airline industry. Furthermore, issues with some of the company's key aircraft, including the grounding of the 737 MAX and subsequent electrical issues, have also affected demand.

Boeing said in its earnings press release for the quarter that it has nearly completed the global return to service of its 737 MAX. It is still waiting for clearance in key markets like China. The company expects the 737 production rate to increase to 31 airplanes per month during the second quarter.

Deliveries of Boeing's 787 Dreamliner have been halted and are likely to remain frozen until the second half of the year, when it is expected to get approval from the Federal Aviation Administration (FAA). In its earnings press release, Boeing noted that it has submitted its certification plan to the FAA and continues to work closely with the administration on the timing for resuming deliveries of the aircraft.

Boeing's next earnings report (for Q2 FY 2022) is anticipated to be released on July 26, 2022.

Article Sources
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  2. The Boeing Co. "Boeing Announces First-Quarter Deliveries."

  3. Visible Alpha. "Financial Data."

  4. TradingView. "Price Chart: BA and S&P 500."

  5. Financial Times. "Aircraft Sales Show Signs of Life After Pandemic Slump."

  6. Barron's. "This Is How Boeing’s 737 MAX Will Again Be Flying in China."

  7. Reuters. "Exclusive: Boeing Tells Airlines 787 Deliveries to Restart Second-Half 2022 - Sources."

  8. Yahoo! Finance. "Earnings Calendar: BA."

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