Why Boeing stock rose 6% on earnings

boeing (B.A. 6.11%) The stock was up 6.3% as of 11:30 a.m. ET after beating its performance Wednesday morning.

Analysts had expected the defense and aerospace giant to post a loss of $0.72 per share on revenue of $19.5 billion, adjusted for one-time items. As it turns out, Boeing only lost $0.47 per share, and sales were billions of dollars ahead of expectations. It raised $22 billion in the fourth quarter.

Boeing sales and profits in 2023

Boeing delivered 157 commercial aircraft to customers in the fourth quarter and recorded net orders for 611 aircraft, indicating strong prospects for future revenue growth. The company’s quarterly revenue increased 10% year-over-year. Operating profit margin and operating profit reversed from negative to positive.

In the end, Boeing still recorded a loss in the quarter. However, when calculated according to generally accepted accounting principles (GAAP), the loss is as follows: many This is better than the “adjusted” numbers mentioned above.

Boeing lost $1.06 per share on a GAAP basis a year ago. The loss for the fourth quarter of 2023 was just $0.04 per share.

Boeing in 2024

Make no mistake. Boeing is still many There are many issues to deal with as we struggle to deal with the aftermath of our latest PR disaster. (It doesn’t get any easier to sell a plane if it’s famous for parts falling off at 16,000 feet.) But financially, Boeing had a great fourth quarter of 2023, and the numbers continue to improve throughout the year. continued.

For all of 2023, Boeing posted 17% revenue growth and a loss of $3.67 per share. However, this loss was less than half of the 2022 loss and operating cash flow was up 70%.

The secret now for Boeing is to respond quickly and decisively to nip the latest scandal in the bud and maintain momentum going into 2023. In this regard, CEO Dave Calhoun said, “Our entire focus is on taking comprehensive steps to strengthen quality.” “Boeing.” The company is taking immediate steps to strengthen the quality of its 737 program, including requiring additional inspections of its factories and key suppliers, supporting increased oversight from airline customers and halting 737 production for a day to refocus employees on quality. I’m drunk.

The downside to this for investors is that Boeing has been keeping quiet about the numbers for some time while it does everything in its power to fix quality. Management remains confident it can achieve its 2025 and 2026 financial goals, but did not provide guidance on 2024 sales or earnings.

For at least the next few quarters, investors will have to be able to fly comfortably while Boeing fixes the 737.