Boeing Shares Gain After Q2 Earnings, Positive Operating Cash Flow

Boeing Shares Gain After Q2 Earnings, Positive Operating Cash Flow
  • Boeing Co BA reported a second-quarter revenue decline of 2% year-over-year to $16.68 billion, missing the consensus of $17.55 billion.
  • Adjusted EPS loss widened to $(0.37) from $(0.40) in 2Q21, missing the consensus of $(0.16).
  • The adjusted operating margin declined to 2.9% compared to 4.4% a year ago. GAAP operating margin was 4.6% versus 6% last year.
  • Revenue by segments: Commercial Airplanes $6.22 billion (+3% Y/Y), Defense, Space & Security $6.19 billion (-10% Y/Y), and Global Services $4.29 billion (+6% Y/Y).
  • Boeing's net cash used in operating activities year-to-date was $(3.13) billion compared to $(3.87) billion a year ago.
  • Operating cash flow for Q2 was $0.1 billion, reflecting higher commercial deliveries and timing of receipts and expenditures. BA continues to expect positive cash flow for FY22.
  • Boeing delivered 121 commercial airplanes in the quarter, and the backlog included nearly 4,200 airplanes valued at $297 billion.
  • Boeing's backlog was $371.73 billion. Backlog at Defense, Space & Security was $55 billion, of which 33% represents orders from customers outside the U.S.
  • The 737 production rate increased to 31 airplanes per month during the quarter.
  • Also Read: Boeing's PTO Forecasts Demand For 2.1M New Commercial Aviation Personnel
  • During the quarter, the company launched the 777-8 Freighter with an order from Qatar Airways.
  • Boeing's cash and investments in marketable securities decreased to $11.4 billion, compared to $12.3 billion at the beginning of the quarter, primarily driven by debt repayment.
  • Price Action: BA shares are trading higher by 3.15% at $160.83 during the premarket session on Wednesday.
  • Photo via Wikimedia Commons

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