Boeing (B.A.) announced earnings on Wednesday that beat Wall Street’s expectations after a tumultuous first quarter.
Boeing reported a first-quarter basic (or adjusted) loss per share of $1.13, lower than the $1.72 estimate, on revenue of $16.57 billion, which was better than forecast. of $16.25 billion but down 8% from last year.
The aircraft maker also reported negative operating cash flow of $3.36 billion, compared to a loss of $318 million last year, and negative free cash flow of $3.92 billion, compared to a loss of $787 million last year. Boing said the results reflect a lower commercial delivery volume and did not provide updated production plans.
“Our first quarter results reflect the immediate steps we took to slow production of the 737 to improve quality,” Dave Calhoun, Boeing Chairman and CEO, said in a statement. “We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future.”
After the release, shares of Boeing rose more than 3% in premarket trading.
In early 2024, Boeing suffered a highly publicized door jam explosion. This led to the grounding of its 737 Max 9 fleet, increased scrutiny of the aircraft manufacturer’s 737 production and safety processes, and a decrease in overall aircraft production. It also led to a new whistleblower documenting production problems with the 787 Dreamliner and the eventual departure of CEO Dave Calhoun. Boeing stock was the second worst performer in the S&P 500 (^GSPC) during the quarter.
Boeing declined to give a forecast for 2024 in its report.
As for first quarter deliveries, Boeing announced it earlier this month. delivered 83 aircraft in total, including 67,737 jets, three 767s and 13,787 Dreamliner wide-bodies. The total of 83 planes represents a 47% drop from a year ago, when Boeing delivered 130 planeswith 113,737 and 11,787 Dreamliners as the two largest components.
Boeing’s deliveries have been slowed by increased scrutiny of its plane assembly processes at its factories in Washington and South Carolina, leading to rising costs. Impacts on Boeing deliveries and aircraft production could also have massive repercussions on Boeing’s cash flow and reserves.
Last week, Boeing was at the center of two separate hearings in the Senate. One investigated Boeing’s safety practices and featured claims made by a Boeing engineer-turned-whistleblower named Sam Salehpour about the 787 Dreamliner. Separately, another Senate committee held a hearing calling for further investigation by the Justice Department into whether Boeing violated the terms of an agreement. deferred prosecution agreement.
Additionally, partner airlines like United (UAL) and Delta (DAL) have been looking for new planes from other aircraft manufacturers like Airbus (AIR.PA), which took advantage of Boeing’s recent difficulties.
Nonetheless, Boeing still recorded 131 gross orders in the first quarter, with its backlog still at 5,591 planes, worth about $44 billion. Despite all of Boeing’s problems, Boeing and Airbus remain the sole suppliers of wide-body commercial aircraft.
Likewise, Boeing’s defense activities are also of critical importance to many governments, including the United States. In addition to fighter jets, military helicopters and tanker aircraft, Boeing manufactures a number of drones for aerial and maritime use.
Pras Subramanian is a journalist for Yahoo Finance. You can follow it Twitter and on Instagram.
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