Boeing Clocks 3% Revenue Decline In Q4

Boeing Co BA reported a fourth-quarter revenue decline of 3% year-over-year to $14.79 billion, missing the consensus of $16.68 billion. Adjusted EPS loss narrowed to $(7.69) from $(15.25) in 4Q20.

• The adjusted operating margin improved to (30.7)% compared to (54.7)% a year ago. GAAP operating margin was (28.2)% versus (52.6)% last year.
• Revenue by segments: Commercial Airplanes $4.75 billion (flat), Defense, Space & Security $5.86 billion (-14% Y/Y), and Global Services $4.29 billion (+15% Y/Y).
• Boeing's operating cash flow improved to $716 million in Q4 compared to a cash burn of $4.01 billion last year due to higher commercial volume, higher advance payments, and lower expenditures.
• The company delivered 340 commercial airplanes in the year, with 99 delivered this quarter, compared to 59 in 4Q20.
• Boeing noted 737 program is currently producing at a rate of 26/month and continues to progress towards a production rate of 31/month in early 2022.
• Commercial Airplanes recorded a $3.5 billion pre-tax non-cash charge on the 787 program. The company now anticipates 787 abnormal costs will increase to ~$2 billion, with most being incurred by the end of 2023, including $285 million recorded in the quarter.
• Boeing's backlog was $377.5 billion, with Commercial Airplanes backlog at $296.88 billion and added 535 net commercial orders. Commercial Airplanes secured orders for 164 737 MAX and 24 freighters.
• Boeing held cash and equivalents of $16.2 billion as of December 2021, versus $20 billion at the beginning of the quarter. Debt reduced to $58.1 billion, from $62.4 billion at the beginning of the quarter due to the repayment of maturing debt.
• Price Action: BA shares traded higher by 2.24% at $208.68 during the premarket session on Wednesday.