Boeing
However, one silver lining is that the company's deliveries (for other products) are improving despite some continued supply chain challenges which resulted in positive cash flow for the first time in 3 years. Another is that the travel industry is firmly on the rebound as the omicron surge has peaked and is rapidly receding.This is evident as TSA travel volumes are about 20% below their pre-pandemic levels, and hotel occupancy rates are about 15% lower.
Inside the Numbers
The company reported a loss of $7.69 a share which was significantly higher than expectations of a loss of $0.42 a share.
Revenue came in at $14.79 billion vs. expectations of $16.59 billion due to an increase in deliveries which led to higher realized sales. This was a 3% decline from last year.
The positive news for the quarter was positive cash flow, while the negative is the 787 Dreamliner which continues to experience rising costs due to manufacturing flaws which have prevented 787s being delivered for the last 15 months.
Boeing lost $4.29 billion last year, its third annual loss in a row as the COVID pandemic and production issues continued to hurt its bottom line. It's an improvement from 2020 when the company had a loss of $11.94 billion.
One silver lining of Boeing's lack of deliveries is that it has large amounts of inventories which means it's less affected by supply chain constraints. This year it expects 500 737 MAX deliveries.
Boeing remains an attractive stock as in the long-term, it's a way for investors to profit from the recovery in air travel. The company is expected to return to profitability and has a forward P/E of 28. Given that many airlines have put off upgrading their fleet over the last couple of months, the company should also have a EPS and revenue tailwind over the next couple of months.
