Boeing (BA) on Wednesday reported earnings that beat Wall Street expectations after a turbulent first quarter.
Boeing reported a first-quarter basic (or adjusted) loss per share of $1.13, below the $1.72 estimate, on revenue of $16.57 billion, which was above expectations of $16.25 billion but down 8% from a year ago.
The planemaker 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. Boeing said the results reflect lower commercial delivery volumes and did not provide updated production plans.
“Our first-quarter results reflect the immediate actions we took to slow 737 production to drive quality improvements,” Dave Calhoun, Boeing's president and CEO, said in a statement. “We will take the time to strengthen our quality and safety management systems, and this work will position us for a stronger and more stable future.”
Following the release, Boeing shares rose more than 3% in pre-market trading.
In early 2024, Boeing experienced a prominent door plug explosion. This led to the grounding of its 737 MAX 9 fleet, increased scrutiny of the planemaker's 737 production and safety operations, and a decline 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 provide guidance for 2024 in its report.
Regarding first quarter deliveries, earlier this month, Boeing reported that 83 aircraft delivered in total, including 67 737s, three 767s, and 13 wide-body 787 Dreamliners. The total of 83 aircraft represents a 47% decrease from last year, when Boeing delivered 130 aircraftwith 113 737s and 11 787 Dreamliners as the two largest components.
Boeing deliveries have slowed due to heightened scrutiny of aircraft assembly operations at its factories in Washington and South Carolina, which has pushed up costs. The impacts on Boeing's deliveries and aircraft production could have huge ramifications for Boeing's cash flow and reserves as well.
Last week, Boeing was the focus of two separate Senate hearings. One researched Boeing's safety practices and presented allegations from a Boeing engineer-turned-whistleblower named Sam Salehpour about the 787 Dreamliner. Separately, another Senate committee held a hearing calling for a deeper investigation by the Justice Department into whether Boeing violated the terms of the agreement. Deferred prosecution agreement.
In addition, airline partners such as United (UAL) and Delta (DAL) have sought new planes from other planemakers such as Airbus (AIR.PA), which has benefited from Boeing's recent troubles.
However, Boeing still received 131 total orders in the first quarter, with the order backlog remaining at 5,591 aircraft, worth about $44 billion. Despite all of Boeing's problems, it and Airbus are still the only suppliers of wide-body commercial aircraft.
Likewise, Boeing's defense business is also of critical importance to many governments, most importantly the United States. In addition to fighter jets, military helicopters, and tanker aircraft, Boeing manufactures a number of drones for air and maritime use.
Pras Subramanian is a reporter for Yahoo Finance. You can follow it Twitter and on Instagram.
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