3 key takeaways from Boeing’s Q1 earnings report

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Apr 28, 2021
  • Boeing reports wider-than-expected loss in the fiscal first quarter.
  • The U.S. company's free cash flow prints at negative £2.64 billion.
  • Chief executive David Calhoun says 2021 is an inflexion point.

Boeing Co. (NYSE: BA) reported a wider-than-expected loss in the fiscal first quarter on Wednesday. Its revenue came almost in line with what the analysts had anticipated. Boeing shares that you can learn to buy online here tanked more than 1% in premarket trading on Wednesday and lost another 2% on market open to trade at £169 per share.

1. Financial performance

Boeing said that its net loss in the first quarter printed at £403.18 million that translates to 66.12 pence per share. In the comparable quarter of last year, its loss stood at a higher £460.67 million, or 80 pence per share.  

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Adjusted for one-time items, the aeroplane manufacturer lost £1.10 per share in Q1. Boeing generated £10.94 billion of revenue that represents a 10% annualised decline. According to FactSet, experts had forecast the company to post £10.95 billion of revenue and 69.71 pence of adjusted loss per share.

2. Revenue from individual business segments

Boeing said that its revenue from the commercial aeroplanes segment tanked 31% in the recent quarter, despite an increase in deliveries to 77 from 50. Revenue from defence, space and security saw a 19% year over year increase, while global services revenue slid 19%. Boeing reported negative £2.64 billion of free cash flow versus negative £2.83 billion expected.

Defence, space, and security was only the only segment among the three that topped the FactSet consensus for revenue in Q1. Earlier in April, Boeing said its sales outpaced cancellations for the second consecutive month.

3. CEO Dave Calhoun’s remarks on CNBC’s “Squawk on the Street”

In his memo to employees, CEO Dave Calhoun said that 2021 is an inflexion point. On CNBC’s “Squawk on the Street”, the chief executive said:

“I do believe it’s an inflexion point for a lot of reasons. First and foremost, the way that the industry came together with the government to keep the industry alive and well for whenever recovery eventually returns. I believe that in the United States, and a few other domestic markets, traffic really is ready to burst back. Secondly, for the last 18 months and the next 12 months, liquidity is the metric that we care the most about. In the first quarter, despite a massive shortfall in 787 deliveries, we’re still slightly ahead of the track that we had planned to get back to cash flow positive in 2022.”

At the time of writing, Boeing is valued at £98.62 billion.

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