Boeing (BA) posts modest profit on 737 MAX deliveries, services growth

Highlights

  • Boeing’s revenue rose by about 8% YoY to US$15.27 billion, helped by deliveries of 737 MAX jets and services growth.

  • Boeing bagged 93 net orders during the period, the company said.

  • Boeing President and CEO David Calhoun said the company would focus more on supply chain capacity and global trade in the future.

The Boeing Co (NYSE: BA) on Wednesday reported a third-quarter operating profit of US$59 million, helped by its commercial plane deliveries and growth in services.

Boeing President and CEO David Calhoun said the company would focus more on supply chain capacity and global trade in the future. He noted that vaccinations and the easing of border protocols have increased demand in the commercial market and helped economic recovery.

Boeing, he said, is well-placed across its portfolio of commercial, defense, space, and services segments. Moreover, it is upgrading its digital manufacturing capabilities for next-gen products, he added.

Third-quarter highlights

Boeing’s revenue rose by about 8% YoY to US$15.27 billion, helped by deliveries of 737 MAX jets and service growth. In the year-ago quarter, its revenue was US$14,139. Likewise, it recorded a core operating profit of US$59 million against a loss of US$754 million a year ago.

It bagged 93 net orders in the period, the company said.

The company’s GAAP loss per share was US$0.19, while the operating cash flow was a negative of US$0.3 billion. Also, its net loss fell to US$132 million from US$466 million in the year-ago quarter.

The company also incurred costs due to problems in the 787 Dreamliner aircraft and Starliner spacecraft programs, critical to its recovery from the pandemic losses.

Boeing forked out roughly US$183 million in charges for inspections and repairs in the quarter. It also spent US$185 million for repairs and other issues in its Starliner program.

Its monthly production of 737 MAX jets rose to 19 aircraft from 16 in the June quarter. It is also producing two jets monthly at its factory in South Carolina.

Boeing’s cash and marketable securities were US$20.0 billion in the quarter.

Also Read: GM sees sharp fall in Q3 revenue, upbeat on full-year results

Boeing’s revenue rose by about 8% YoY to US$15.27 billion, helped by deliveries of 737 MAX jets and services growth.

Source: Pixabay

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Stock Performance

The Boeing (BA) stock rose by 2% YTD. It was trading at US$206.78, down 1.44%, at 10:38 am ET from its previous close. The 52-week highest and lowest stock prices were US$278.57 and US$141.58, respectively. Also, its forward P/E one-year ratio is -403.48, and the EPS is US$-15.36.

Boeing’s market cap is around US$122.334 billion.

Also Read: Lockheed (LMT) lowers guidance; Sherwin-Williams (SHW) flags supply woes

Bottomline

The airline industry has suffered massive losses due to the pandemic. But the recent improvement in the covid situation is paving the way for its recovery. Hence, the industry is expecting a sustained recovery in the coming months. Investors, however, should apply due diligence before investing in stocks.

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