Boeing’s $16.25 Billion Revenue Dip in Q1 Highlight

Key Points:

• Boeing anticipates Q1 revenue of $16.25 billion, down 9.3% YOY, with a net income loss of -$773.1 million.
• Delivered only 83 aircraft in Q1, a 47% decrease, affecting market share as airlines favour Airbus.
• Faced challenges, including the 737 Max 9 fleet grounding and CEO Dave Calhoun’s resignation.

Boeing is gearing up to announce its first-quarter results this Wednesday before the market opens. Meanwhile, its share price has slightly risen, now at $170.77, an increase of nearly 1%. This slight rise in stock value reflects a cautious optimism among investors, who are keenly awaiting further insights into the company’s financial health and prospects.

Forecast: Q1 Net Loss of $773.1M, Core Loss $1.72/Share

Boeing faces significant financial headwinds as it enters the year’s first quarter. Analysts predict a 9.3% decline in quarterly revenue to $16.25 billion, signalling persistent challenges in the aviation sector. According to Bloomberg consensus, the core loss per share is expected to be around -$1.72, with an adjusted net income loss pegged at -$773.1 million. Reduced aircraft deliveries and ongoing production issues underscored by a negative operating cash flow of -$2.77 billion highlight financial strain.

Boeing Aircraft Deliveries Drop to 83, Down 47% YoY

The first quarter saw Boeing deliver 83 aircraft, marking a sharp 47% decline from the year ago. The breakdown of these deliveries includes 67 units of the Boeing 737, 3 of the Boeing 767, and 13 of the Boeing 787 Dreamliner. This significant reduction impacts Boeing’s revenue and market share. Particularly, airline partners like United and Delta favor Airbus models amid these turbulent times.

Boeing’s Q1 Turmoil: Groundings, Whistleblowers, CEO Exit

The quarter had its controversies and operational challenges for Boeing. The company faced a series of significant events, including grounding the 737 Max 9 fleet due to safety concerns with door plugs, increased regulatory scrutiny, and potential legal issues. Moreover, the whistleblower claims regarding production flaws in the Boeing 787 and the resignation of CEO Dave Calhoun have further compounded the company’s difficulties, highlighting the need for stringent quality controls and robust management practices.

2023 Outlook: $84.66B Revenue, Defense Sector Key

Although Boeing had a rocky start, the annual forecast remains cautiously optimistic. It projects a full-year revenue of $84.66 billion and an operating cash flow of $3.69 billion. The core earnings per share (EPS) are expected to recover to $0.76. The defence segment continues to be a critical component of Boeing’s portfolio, serving various governments with products ranging from fighter jets to military drones. This division is pivotal not only for revenue but also for maintaining strategic relationships and national security commitments.