Boeing Posts Unexpected $3.3 Billion Loss as Revenue Misses Estimates

Losses in defense business offset commercial jet recovery

Key Takeaways

  • Boeing delivered 112 commercial airplanes, missing analyst estimates.
  • Commercial airplane deliveries have rebounded after collapsing amid the COVID-19 pandemic.
  • Revenue and adjusted earnings per share also missed analyst predictions.
Boeing Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted Earnings Per Share Miss -$6.18 $0.11
Revenue Miss $16.0B $18.0B
Commercial Airplane Deliveries (Announced Oct. 11) Miss 112 120

Source: Predictions based on analysts' consensus from Visible Alpha

Boeing (BA) Financial Results: Analysis

Boeing Co. (BA), the world's No. 2 aircraft maker by market value, unexpectedly reported a wider loss as charges in its defense business offset a rebound in commercial jet deliveries and revenue slumped.

Boeing reported an adjusted loss, excluding certain items, of $6.18 a share, 10 times the loss a year ago, compared with a consensus estimate for a profit of $0.11 a share. The company lost $2.8 billion on fixed-price development programs for its defense business, including higher manufacturing and supply chain costs. Revenue rose 4% to $16.0 billion, below analysts' estimates of an 18% increase to $18 billion. Boeing's commercial airplane revenue rose 40% even though deliveries came in below analyst estimates.

Demand for commercial jets plummeted early in the pandemic as supply chain delays and quality control issues hindered production, then picked up as travel restrictions eased. It has also restarted deliveries of its 787 after a year of delays due to a failure to meet U.S. regulatory standards. Boeing said demand for its commercial airplanes remains strong.

BA Commercial Airplane Deliveries

Boeing said Oct. 11 that commercial airplane deliveries rose 32% to the second-highest level in almost four years. Still, the company delivered just 112 airplanes, short of analysts' estimates of 120. It's a key measure of Boeing's business because commercial sales are typically more sensitive to economic conditions compared with Boeing's military aircraft business.

BA Outlook and Stock Performance

Boeing said it expects passenger traffic to return to 2019 levels in 2023 and 2024, boosting demand for its planes.

Shares of Boeing were little changed as of 8 a.m. New York time. Boeing shares have dropped by 31% in the last year, compared with a 15% decline in the S&P 500 Index.

Boeing's next earnings report (for Q4 FY 2022) is anticipated to be released on Jan. 25, 2023.

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