Boeing Stock Slides On Q1 Results, Loss Widens

Boeing Co BA first-quarter revenue declined 8% year-over-year to $13.99 billion, missing the consensus of $15.83 billion. Adjusted EPS loss widened to $(2.75) from $(1.53) in 1Q21.
The adjusted operating margin declined to (10.4)% compared to (2.4)% a year ago. GAAP operating margin was (8.4)% versus (0.5)% last year.
Revenue by segments: Commercial Airplanes $4.16 billion (-3% Y/Y), Defense, Space & Security $5.48 billion (-24% Y/Y), and Global Services $4.31 billion (+15% Y/Y).
Boeing's operating cash outflow was $3.22 billion for the quarter, due to unfavorable receipt timing, compared to $3.39 billion in 1Q21.
BA continues to expect positive cash flow for FY22.
The company delivered 95 commercial airplanes in the quarter, and the backlog included nearly 4,200 airplanes valued at $291 billion.
Boeing's backlog was $371 billion. Backlog at Defense, Space & Security was $60 billion, of which 33% percent represents orders from customers outside the U.S.
Boeing stated that the 737 production rate continues to increase and is expected to increase to 31 airplanes per month during the second quarter.
During the quarter, the company launched the 777-8 Freighter with an order from Qatar Airways.
Boeing stated that, to minimize inventory and the number of airplanes requiring change incorporation, the 777-9 production rate ramp is being adjusted, including a temporary pause through 2023. This will result in ~$1.5 billion of abnormal costs beginning in the second quarter of this year and continuing until 777-9 production resumes.
Boeing's cash and investments in marketable securities decreased to $12.3 billion, compared to $16.2 billion at the beginning of the quarter, primarily driven by operating cash outflows and debt repayment.
Price Action: BA shares traded lower by 3.61% at $160.01 during the premarket session on Wednesday.
Photo via Wikimedia Commons

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