Boeing’s net loss contracts to £1.85 billion in the fiscal second quarter

The Boeing Company (NYSE: BA) published its quarterly financial results on Wednesday that came in weaker than analysts’ estimates. The company said that it will slash production of its primary commercial aircraft as COVID-19 continues to wreak havoc on demand. Boeing’s best-selling 737 Max is also grounded since March 2019 after two fatal crashes.

Shares of the company jumped less than 1% in premarket trading on Wednesday. At £131.62 per share, Boeing is currently a little under 50% down year to date in the stock market after recovering from an even lower £73.25 per share in late March. Learn more about swing trading.

Boeing’s Q2 financial results versus analysts’ estimates      

According to Refinitiv, experts had forecast the company to print £10.15 billion in revenue in the second quarter. In terms of loss per share, their estimate was capped at £1.96. In its report on Wednesday, Boeing fell shy of both estimates posting a lower £9.10 billion in revenue and a higher £3.69 of adjusted loss per share in Q2.

The report revealed Boeing’s net loss to have contracted to £1.85 billion in the second quarter versus a much broader £2.27 billion in the same quarter last year. On a year over year basis, its revenue also saw a 25% decline. Its supplier, General Electric, also released its quarterly earnings report on Wednesday.

As per Boeing, production for its 737 MAX will gradually increase to 31 per month by the first few months of 2022. Its 787 planes are likely to see another production cut to 6 per month in 2021. One of the largest customers of Boeing, British Airways, retired its entire fleet of Boeing’s 747s earlier in July.

Other prominent figures in Boeing’s earnings report

Other prominent figures included in Boeing’s earnings report on Wednesday include a 65% decline in revenue from Commercial Airplanes to £1.26 billion that was also lower than the experts’ forecast. Revenue from Defence, Space, and Security segment remained almost unchanged at £5.08 billion that was marginally lower than the analysts’ estimates.

Boeing also highlighted to have generated £2.69 billion of revenue from Global Services that represents a 23% decline on an annualised basis and was lower than the FactSet consensus. As per FactSet, experts had forecast the company’s free cash flow at negative £5.14 billion. The Chicago-based company, however, topped the estimate and posted negative £4.34 billion of free cash flow instead.

Earlier this year, the company announced plans of slashing its workforce by 10% that is expected to affect roughly 16,000 jobs. Boeing also boosted its liquidity amidst COVID-19 with a debt sale of £19.28 billion.

At the time of writing, Boeing is valued at £74.34 billion.