Boeing reported strong earnings for the first quarter of 2019, with revenue up 7 percent year over year and adjusted earnings per share up 19 percent. The company attributed the strong results to higher commercial airplane deliveries and increased defense sales. Boeing also announced a new $14 billion share repurchase program and raised its dividend by 10 percent.
According to Reuters, Boeing’s quarterly profit fell short of analyst expectations on Wednesday, as the world’s largest planemaker wrestles with production problems for its grounded 737 MAX jet and costs related to a U.S. Department of Justice investigation.
The company said it earned $2.55 billion in the first quarter, down from $3.16 billion a year earlier. Analysts had expected earnings per share of $3.11, according to Refinitiv data.
Revenue rose 2% to $22.9 billion, missing analysts’ average estimate of $23.26 billion as deliveries of commercial jets declined 8%. Boeing has been struggling since regulators grounded the 737 MAX in March 2019 following two deadly crashes that killed 346 people in Indonesia and Ethiopia within five months. The grounding has cost Boeing billions of dollars as it has been unable to deliver new jets while continuing to produce them at high rates without knowing when they will be able to fly again.
Boeing Earnings Call
Boeing will be holding an earnings call on Wednesday, October 28th at 10:30am EST. This call will be webcast live and can be accessed through the company’s website.
Investors and analysts will be interested to hear Boeing’s latest update on its commercial airplane business, as well as any new information about the much-anticipated 787 Dreamliner.
The plane has been delayed several times and is now more than two years behind schedule. During the earnings call, Boeing executives are likely to provide an update on efforts to get the 787 back on track. They may also discuss other topics such as recent orders for the 777 and 747-8 planes, as well as the company’s military aircraft business.
How is Boeing Doing Financially?
Boeing is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aircraft manufacturers; it is the second-largest defense contractor in the world based on revenue, after Lockheed Martin.
The company consolidated its commercial airplane manufacturing operations in Washington state and California in 2017. In 2019, Boeing recorded $76.6 billion in sales (compared to $86 billion in 2018) and delivered 806 commercial airplanes (down from 893 a year earlier). Its backlog of unfilled orders stood at 5,796 aircraft as of December 31st 2019—the vast majority being 737s (4,493)—valued at $412 billion.
On October 11th 2019, Boeing announced it would take a $5.6 billion charge related to the grounding of its 737 MAX fleet following two fatal crashes involving the aircraft model. This brought the total charges related to the grounding to more than $8 billion since March 2019 when the jets were first grounded globally. The U.S.-based aerospace giant has lost nearly $20 billion in market value since late March 2019 when Ethiopian Airlines Flight 302 crashed shortly after takeoff from Addis Ababa en route to Nairobi Kenya—killing all 157 people on board—in similar circumstances to that of Lion Air Flight 610 which crashed off Indonesia less than five months earlier resulting in 189 fatalities.
In July 2020 Boeing secured $25bn in financing guaranteed by US taxpayers to help weather the pandemic crisis but will have give up some control over key businesses including future development of new jets as part of conditions for accepting government aid .This marks one of most high profile examples where emergency coronavirus legislation passed by Congress this spring allows for struggling companies keep afloat with direct assistance from American taxpayers without having go through bankruptcy courts . On August 24 ,2020 United airlines said it would cancel plans to buy 15% stake worth nearly$4bn in struggling fellow carrier air Canada ,dealing another major setback for beleaguered planemaker .
Is Boeing Making Money?
Yes, Boeing is making money. In fact, according to their 2017 annual report, they brought in a revenue of $93.3 billion. Of that, their net income was $10.1 billion.
So yes, Boeing is most definitely making money.
Is Boeing a Buy Sell Or Hold?
As of right now, I would say that Boeing is a hold. The stock has been volatile over the past year, but it seems to be stabilizing around the $370 mark. I think that the company has good long-term prospects, but there are some near-term headwinds that could keep the stock from performing well in the short term.
The biggest issue facing Boeing right now is the continued grounding of its 737 Max aircraft. This has had a major impact on both commercial and military sales for the company, and it doesn’t seem like there is an end in sight. The longer this drag on sales continues, the more pressure there will be on Boeing’s bottom line.
In addition to the 737 Max issue, trade tensions between the US and China could also weigh on Boeing’s performance. China is one of Boeing’s largest customers, and any further escalation in trade tensions could lead to Beijing cancelling or delaying orders for new aircraft. This would be a major blow to Boeing’s revenue and earnings growth prospects.
So while I think Boeing is a solid long-term investment, there are some near-term risks that investors need to be aware of before buying shares.
Is Now a Good Time to Invest in Boeing?
There is no simple answer to whether now is a good time to invest in Boeing. The aerospace giant has been through a lot lately, first with the grounding of its 737 MAX aircraft following two deadly crashes, and more recently with the coronavirus pandemic decimating air travel demand. Both factors have weighed heavily on Boeing’s share price, which is down around 40% from its 52-week high.
That said, there are reasons to believe that Boeing will eventually recover. The MAX issue appears to be slowly getting resolved, with the FAA expected to approve a software fix in the coming weeks or months. And while it will take longer for air travel demand to rebound, it almost certainly will at some point given that it’s still one of the most efficient ways to transport people and goods around the globe.
So if you’re patient and have a long-term time horizon, investing in Boeing today could eventually pay off handsomely. Just be aware that there’s still a lot of uncertainty surrounding the company in the near-term.
Boeing second-quarter earnings fall short of Wall Street's estimates
In the second quarter of 2020, Boeing reported an earnings loss of $2.4 billion. This was a significant decrease from the $3.7 billion profit that the company reported in the same quarter last year. The main reason for this decrease was due to the ongoing pandemic and the resulting decrease in demand for new aircraft.
Boeing has been working to cut costs and improve efficiency in order to offset some of these losses. Looking forward, Boeing is hopeful that travel will begin to pick back up as countries start to reopen their economies. The company is also working on developing new aircraft that will be more fuel efficient and have a smaller environmental impact.