Why Boeing (BA) Shares Are Flying Higher Today - Boeing (NYSE:BA)

Boeing Co BA shares are up Wednesday morning after first-quarter results, with topline beating Street expectations. The company also displayed confidence in its goals for this year, as well as for the longer term.
BA reported a first-quarter FY23 sales increase of 28% year-over-year to $17.92 billion, beating the consensus of $17.57 billion.
Revenue increase reflects 130 commercial deliveries in the quarter, compared to 95 in 1Q22.
Adjusted loss per share of $(1.27) missed the consensus of $(1.07).
Loss from operations contracted to $(149) million, compared to $(1.16) billion a year ago.
Commercial Airplanes revenue increased by 60% Y/Y to $6.7 billion.
During the quarter, secured Commercial Airplanes net orders of 107, and the backlog included over 4,500 airplanes valued at $334 billion.
Defense, Space & Security revenue grew by 19% Y/Y to $6.54 billion. The backlog was $58 billion, of which 30% represents orders from customers outside the U.S.
Global Services revenue grew by 9% Y/Y to $4.72 billion. The operating margin expanded 330 bps to 17.9%, reflecting higher commercial volume and a favorable mix.
Also Read: Boeing's 'Worst Enemy' Is Themselves: Analyst Breaks Down Latest 737 Max Problems
BA's net cash used by operating activities for the quarter was $(318) million, compared to $(3.22) billion in 1Q22.
The company held cash and marketable securities of $14.8 billion at the end of the quarter. The total company backlog was $411 billion.
Boeing continues to project that it will deliver 400-450 737 airplanes in 2023; plans to increase production to 38 per month later this year.
Boeing states, "We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term."
On the 737 program, Boeing noted that earlier this month, the program's fuselage supplier notified that a non-standard manufacturing process was used on two fittings in the aft fuselage section of certain 737 airplanes. The company expects final assembly production to recover in the coming months, with plans to increase to 38 per month later this year and 50 per month in the 2025/2026 timeframe.
Also Read: Boeing Aims To Reach Pre-Crisis 737 MAX Production Rates In 2025: Report
FY23 Outlook: Boeing reaffirmed its outlook of $3 billion - $5 billion in adjusted free cash flow and $4.5 billion - $6.5 billion in operating cash flow.
Price Action: BA shares are trading higher by 2.87% at $208.00 premarket on Wednesday.

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