Boeing Q3 2021 Earnings Report Recap

BA missed on earnings and revenue

Key Takeaways

  • Boeing more than tripled its commercial airplane deliveries year over year but came up short of analyst expectations.
  • Commercial airline deliveries have rebounded as travel demand has increased, but the recovery has not occurred as quickly as anticipated.
  • Boeing has returned more than 200 737 MAX planes to service. The planes had been grounded for safety concerns.
Boeing Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted Earnings Per Share Miss -$0.19 -$0.15
Revenue (B) Miss $15.3 $17.2
Commercial Airplane Deliveries Miss 85 96

Source: Predictions based on analysts’ consensus from Visible Alpha

Boeing (BA) Financial Results: Analysis

The Boeing Company (BA) reported Q3 FY 2021 results that fell short of analyst predictions on multiple fronts. The company posted adjusted losses per share that were wider than consensus estimates, although the results improved significantly on a year-over-year (YOY) basis. Revenue also disappointed, as the company posted 8.1% YOY revenue growth versus an expectation of roughly 22% improvement.

On a positive note, however, Boeing announced that it had delivered nearly 200 737 MAX airplanes and returned more than 200 previously grounded 737 MAX aircraft to service since November 2020. These planes were grounded in March 2019 over safety concerns. The company has faced airplane production and delivery issues with its 737 Max and its 787 Dreamliner, the latter of which was delayed following the discovery of a new defect in a component earlier this month.

BA Commercial Airplane Deliveries

Boeing also underperformed expectations in the key metric of commercial airplane deliveries. The company reported 85 commercial aircraft delivered for Q3, short of the 96 analysts had expected. 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. The reported figure is more than triple that of the year-ago quarter, showing that Boeing has recovered from the disruption early in the pandemic. However, this has happened more slowly than analysts predicted.

BA Stock Performance

Boeing shares were up nearly 2% in pre-market trading following the release of the company's earnings report. Over the past year, Boeing has provided a total return of 30.5%, behind the S&P 500's return of 34.5%.

Boeing Earnings Call Recap

Despite the company's mixed performance, Chief Executive Officer (CEO) Dave Calhoun said in a morning conference call that the company was showing measurable progress. "We are turning a corner and the recovery is gaining momentum,” he said. “I’ve said before that we view this year as a critical inflection point, and it’s providing to be just that.”

Boeing did not provide forward guidance in its earnings release. The aerospace giant's next earnings report (for Q4 2021) is estimated to be released on Jan. 25, 2022.

Article Sources
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  2. Wall Street Journal. "U.S. Grounds Boeing 737 MAX Jets." Accessed Oct. 27, 2021.

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