Boeing reported downbeat second-quarter results before the opening bell on Tuesday. The aerospace giant said it delivered 90 commercial airplanes in the quarter, down 54% from 194 deliveries in same period last year.
Boeing also said the financial outlook it issued in April doesn’t reflect the impact of the grounded 737 MAX jets and now plans to provide a guidance at a later date.
The earnings report comes a few days after the company announced it would book an after-tax charge of $4.9 billion in the period to cover potential compensation to 737 MAX airlines that have been hurt by the grounding.
Shares of the company lost 1.36% to change hands at $368.00 in pre-market trading session after the report. The stock is up more than 15% so far this year and nearly 6% in the past 12 months.
BA Earnings & Outlook
Boeing posted a net loss of $2.94 billion, or $5.21 per share for the second quarter ended June 30, compared with a profit of $2.20 billion, or $3.73 per share, a year earlier. Adjusted loss was $5.82 per share compared with the $1.87 adjusted loss that analysts surveyed by Refinitiv had forecast.
Sales dropped 35% to $15.75 billion during the quarter. Before the company took the pretax charge, analysts on Wall Street were expecting it to generate revenue of $18.6 billion, according to data compiled by Refinitiv.
Revenue from commercial airplane business came in at $4.72 billion, down 66% from last year and below consensus estimates of $6.61 billion.
Defense, Space & Security segment saw revenue rise 8% to $6.6 billion in the second-quarter, thanks to higher volume across derivative aircraft, weapons, and satellites. Analysts expected the segment to bring in revenues of $6.51 billion.
Meanwhile, the company’s Global Services division posted revenue of $4.5 billion in the quarter, primarily driven by higher international government services volume and the acquisition of Boeing Distribution Services, Inc. (formerly KLX).
Boeing CEO Comments
“This is a defining moment for Boeing and we remain focused on our enduring values of safety, quality, and integrity in all that we do, as we work to safely return the 737 MAX to service,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg.
“During these challenging times, teams across our enterprise continue to perform at a high level while delivering on commitments and capturing new opportunities driven by strong, long-term fundamentals,” Muilenburg added.
Boeing Company Profile
Boeing manufactures commercial airplanes, provides defense equipment, and maintains a small captive finance division. With headquarters in Chicago, the firm competes with Airbus in commercial aviation and with Lockheed, Northrop, and several other firms in defense.
Sales are split about 70% and 30% between the commercial aircraft and defense end markets. In 2018, Boeing generated over $100 billion in sales. – Warrior Trading News
