Boeing stock is trading down since issuing an earnings report in which the aerospace and defense company missed on revenues and had a surprise earnings per share (EPS) loss.
In the report, Boeing saw quarterly revenue come in at $19.80 billion compared to a $20.02 billion estimate. Adjusted earnings per share came in at a loss of $1.75 compared to an estimate of $0.17.
Fourth quarter revenues were up 35% over one year ago, however it still missed Street estimates. The company’s quarterly loss was the second in a row for the aerospace firm.
The company reaffirmed its previous 2023 guidance, which calls for $4.5 billion to $6.5 billion in operating cash flow, as well as $3 billion to $5 billion in free cash flow (non-GAAP). It looked like after a dismal 2022, when the firm only generated $3.5 billion of operating cash flow, investors had hoped to see a higher profitability in 2023.
Dave Calhoun, Boeing CEO and president, said in a statement, “We had a solid fourth quarter, and 2022 proved to be an important year in our recovery. Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond. We are investing in our business, innovating and prioritizing safety, quality and transparency in all that we do. While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength.”
In its commercial division, the company delivered 152 airplanes, which marked an increase of over 50% compared to one year prior. 110 deliveries of 737 planes made up the bulk of the deliveries, which rose 31% from one year prior. The company also had 22 deliveries of 787 Dreamliner planes over the quarter, after delivering none one year prior.
Regardless, the commercial airplanes division ended the quarter with a $626 million loss, and ended the year having lost $2.37 billion, for an operating margin loss of (9.2%) over the year.
By the end of 2022, Boeing’s total backlog of planes was worth $4.043 billion, which was up nearly $270 million over one year ago.
