Boeing’s Earnings Are a Mess, Again. But Cash Flow Saves the Day.

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Boeing delivered 121 commercial jets in the second quarter of 2022, up from 95 jets delivered in the first quarter.

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Justin Tallis/AFP via Getty Images

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Quarterly earnings from Boeing were messy, again. Investors could use a quiet report, but that might be too much to ask for. Still, there was enough good news to move the stock higher early Wednesday.

B oeing (ticker: BA) reported an adjusted loss of 37 cents a share from sales of $16.7 billion in the second quarter. Wall Street was looking for EPS of 1 cent a share from sales of $17.6 billion.

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Cash burn fell dramatically, though. The company burned through about $200 million in the second quarter. Analysts projected a use of about $520 million, down from a use of about $3.6 billion in the first quarter.

The stock rose more than 3% shortly after results were released. S&P 500 and Dow Jones Industrial Average futures were up 0.9% and 0.4%, respectively.

Boeing
delivered 121 commercial jets in the second quarter of 2022, up from 95 jets delivered in the first quarter. Before the pandemic and 737 MAX problems, Boeing delivered about 190 jets in the second quarter of 2018.

This is a developing story. Read a partial earnings preview below.

A lack of drama with the Q2 earnings report would be a relief for investors because Boeing has missed earnings six of the past eight times it reported numbers. The smallest miss happened in the first quarter of 2021 when reported earnings per share missed Wall Street estimates by about 70%.

The pandemic and problems with the 737 MAX and the 787 have made forecasting results incredibly difficult. The MAX was grounded worldwide between March 2019 and November 2020 following two fatal crashes inside of five months. And the 787 hasn’t been delivered in more than a year after some quality issues were discovered in manufacturing.

Some of the issues that generate the quarterly volatility are out of Boeing’s hands, says Vertical Research Partners analyst Rob Stallard.

“787 clearance, MAX return to flight in China, MAX 10 [certification] extension, and I’d probably add supply chain/inflation to the list too,” says Stallard.

Options markets imply that Boeing stock will move about 5%, up or down, following earnings. That is similar to the post-earnings volatility experience over the past four quarterly reports.

Coming into Wednesday trading, Boeing stock is down about 23% year to date, while the S&P 500 and Dow Jones Industrial Average are down about 18% and 13%, respectively. Shares are off about 65% from their all-time high set shortly before the second tragic MAX crash.

Write to Al Root at [email protected]

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Credit: www.marketwatch.com /

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