Boeing Reports Wider-Than-Expected Loss but Exceeds Revenue Expectations

Shares of Boeing Co. surged 3.1% in premarket trading on Wednesday following the aerospace and defense giant's latest financial report. While the company experienced a wider-than-expected loss, it managed to surpass revenue expectations and maintain its full-year outlook for free cash flow.

Financial Performance

Boeing's net losses narrowed to $1.64 billion, or $2.70 per share, compared to $3.31 billion, or $5.49 per share, in the same period last year. Notably, core per-share losses of $3.26 were slightly wider than the FactSet loss consensus of $3.18.

However, there was a silver lining as revenue experienced a significant 13.5% growth, reaching $18.10 billion. This figure exceeded the FactSet consensus of $18.01 billion. The boost in revenue was primarily driven by better-than-expected performance from Boeing's commercial airplanes and global services divisions. On the other hand, revenue from the defense, space, and security segment fell short of expectations.

Free Cash Flow and Delivery Outlook

Boeing reported a free cash flow of negative $310 million, slightly below the FactSet consensus of negative $266.7 million.

Looking ahead to 2023, the company has reaffirmed its guidance for free cash flow in the range of $3.0 billion to $5.0 billion. Additionally, Boeing expects to deliver between 70 and 80 787 aircraft. However, due to quality issues causing delivery delays, the company has revised its outlook for 737 deliveries down to 375-400 from the previous estimate of 400-450.

Stock Performance

Over the past three months, Boeing's stock has faced a decline of 14.8%, while the Dow Jones Industrial Average has experienced a 6.5% decrease.

Boeing remains determined to navigate these challenges and continue its pursuit of success in the aerospace and defense industry.