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Boeing investors need to go back to the first quarter of 2018 to find a quarter unaffected by the pandemic or 737 MAX.
Scott Barbour / Getty Images
Commercial space and defense giant
Boeing
reported earnings in the first quarter that missed forecasts. Shares were falling.
Boeing
(ticker: BA) reported a loss of $ 2.75 per share from $ 14 billion in sales on Wednesday.
Wall Street was looking for a loss of about 15 cents per share from $ 15.9 billion in sales. A year ago, in the first quarter of 2021, Boeing reported a loss per share of $ 1.53 from $ 15.2 billion in sales.
“It just got worse,” Vertical Research Partners analyst Rob Stallard wrote in a post-earnings report Wednesday. Defense and space sales were below his forecast and there is still no earnings guidance for investors to reference.
“This was another terrible neighborhood from Boeing. And what we think will really worry investors is that we keep getting MORE bad news,” Stallard added.
Investors have to go back to the first quarter of 2018 to find a first quarter unaffected by the pandemic or 737 MAX when the jet was put on the ground worldwide between March 2019 and November 2020 after two crashes. At the time, Boeing earned about $ 3.64 a share of $ 23.4 billion in sales.
Boeing shares fell 9.6% at the start of Wednesday trading to around $ 151 per share. shares. That
S&P 500
and
Dow Jones Industrial Average
has increased by 0.4% and 0.2% respectively. The stock is in line with its worst daily decline since June 11, 2020, when it fell more than 16% according to Dow Jones Market data.
The Boeing stock pulls the entire Dow stock of 30 stocks down, accounting for about 100 points of fall for the index.
It’s just another tough quarter for the company. Boeing delivered 95 commercial jets in the first quarter of 2022. That is up from 77 jets delivered in the first quarter of 2021. Back in the first quarter of 2018, Boeing delivered 218 commercial jets.
Boeing burned through $ 3.6 billion in cash during the quarter. Wall Street was looking for money laundering, or about $ 3 billion. A year ago, in the first quarter of 2021, Boeing burned through about $ 3.7 billion.
Over the past 12 quarters, just after the second MAX crash, Boeing has lost about $ 24 billion and burned through about $ 34 billion in cash flows.
“While the first quarter of 2022 brought new challenges to our world, industry and business, I am proud of our team and the constant progress we are making towards our key commitments,” CEO Dave Calhoun said in the company’s press release. “We increased 737 MAX production and deliveries and made significant progress on the 787 by submitting our certification plan to the FAA.”
The MAX jet was launched worldwide between March 2019 and November 2020 after two deadly crashes within five months. Boeing has delivered its backlog of MAX jets built during the grounding as well as increased production again. Boeing is also not delivering 787 jets now after some production quality issues discovered by the FAA.
Over the 12 quarters, Boeing has overlooked analysts’ estimates nine times. Including pre-market trading on Wednesday, the stock has fallen eight times after results.
It has been an incredibly difficult time for Wall Street to predict results. And based on the stock price reactions of recent quarters, investors also did not have a good idea of what to expect.
The option markets indicated that the Boeing stock will move around 6%, up or down, after earnings. The stock has been moving around 3%, up or down, after the last four quarterly reports. Boeing shares have fallen three times after the last four reports and risen once. The stock has fallen at each miss and risen with an earnings beat.
When the Boeing stock was traded on Wednesday, it has fallen 17% year to date, worse than the respective movements of 12% and 8% in the S&P 500 and Dow.
Write to Al Root at allen.root@dowjones.com