Boeing posts another big loss; sees ‘inflection point’ as COVID-19 recovery takes shape
Boeing (BA) on Wednesday reported a wider than expected loss during the first quarter, as the aerospace giant continued its slow recovery from the double-barreled blast of COVID-19 and the idling of its flagship 737 MAX plane, grounded for nearly a year.
Here are key metrics from the report, versus what Wall Street was expecting, according to a consensus forecast compiled by Bloomberg:
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Revenue: $15.2 billion vs $15.12 billion expected
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Adjusted loss per share: $1.53 vs 90 cents expected
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GAAP share loss: 92 cents vs. 56 cents expected
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Operating cash flow: -$3.4 billion vs. $142.87 million expected
Boeing’s operating losses narrowed during the quarter, a partial reflection of rising 737 deliveries have helped it stage a comeback from the pandemic’s lows. Yet those were partly counterbalanced by fewer 787 deliveries (which were briefly halted amid safety concerns), and lower advance payments, the company said.
Meanwhile, Boeing delivered 77 commercial airplanes during the quarter, a 54% jump from the comparable year-ago quarter.
“While the global pandemic continues to challenge the overall market environment, we view 2021 as a key inflection point for our industry as vaccine distribution accelerates and we work together across government and industry to help enable a robust recovery,” Boeing CEO David Calhoun said in a statement.
Since regulators cleared the 737 MAX to resume flying, Boeing deliveries and orders have taken flight after being decimated by the pandemic, and the bad press that followed two deadly crashes. Last month, in a milestone on its road to recovery from a grim 2020, Boeing delivered 29 planes and won 40 net orders — its best showing since the pandemic hit.
However, Boeing is still feeling the overhang of the 737 crisis, with many planes still languishing in storage. Analysts see that as a drag on the company’s bottom line, particularly as the recovery in global travel demand begins to take shape.
The company recently stated that its clients are spending on aircraft purchases, as the COVID-19 mass vaccination effort sparks a boom in air travel.
During the quarter, Boeing saw a drop in commercial airplane revenues to $4.3 billion amid fewer 787 deliveries — but saw a gain in 737 transfers. The company also pledged “progress on the safe return to service” of the troubled 737 MAX, and has delivered more than 85 of them to customers since the FAA approved its return to the skies.
According to Boeing, 21 airlines have returned their fleets to service, logging over 26,000 flights and nearly 60,000 flight hours as of April 26.
Boeing’s stock, traded on the New York Stock Exchange, fell by around 1% in pre-market action Wednesday.
Javier David is an editor for Yahoo Finance. Follow Javier on Twitter: @TeflonGeek
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