Boeing (BA.US) is trading over 3% higher today, following release of Q2 2024 earnings report. However, earnings presented by the US planemaker have been weaker than expected. Boeing reported an almost 15% drop in Q2 revenue, compared to a year ago quarter, with Commercial Airplanes sector experiencing an over-30% YoY plunge in revenue. Gross profit came in smaller-than-expected, while operating loss turned out to be larger than expected. Net loss was around 65% bigger than analysts' projected. On a positive note, the company report a cash burn (negative free cash flow) that was a touch smaller than expected.
Given that Boeing's earnings were weaker than expected almost all across the board, one may wonder what is driving today's gains on Boeing stock. Company said that Kelly Ortberg will replace Dave Calhoun as CEO and investors hope that he will help turnaround the planemaker. Also, Boeing said that it plans to boost Boeing 737 production to 38 per month by the end of this year, and that its backlog of orders includes over 5,400 commercial airplanes worth almost $440 billion.
Boeing's Q2 2024 earnings
- Revenue: $16.87 billion vs $17.46 billion expected (-14.6% YoY)
- Commercial Airplanes: $6.00 billion vs $6.03 billion expected (-32% YoY)
- Defense, Space & Security: $6.02 billion vs $6.24 billion expected (-2.4% YoY)
- Global Services: $4.89 billion vs $5.02 billion expected (+3.0% YoY)
- Cost of revenue: $15.64 billion vs $15.41 billion expected
- Gross Profit: $1.23 billion vs $1.47 billion expected
- Gross Margin: 7.3% vs 8.4% expected
- Operating Income: -$1.09 billion vs -$632 million expected
- Commercial Airplanes: -$715 million vs -$824.8 million expected
- Defense, Space & Security: -$913 billion vs -$498.3 million expected
- Global Services: $870 million vs $855 million expected
- Unallocated, Eliminations & Other: -$634 million vs -$382 million expected
- Operating Margin: -6.5% vs -3.6% expected
- Net Income: -$1.44 billion vs -$0.87 billion expected
- Net Margin: -8.5% vs -5.0% expected
- EPS: -$2.33 vs -$1.42 expected
- Operating Cash Flow: -$3.92 billion vs -$3.73 billion expected
- Free Cash Flow: -$4.33 billion vs -$4.34 billion expected
Boeing (BA.US) trades higher today as investors hope new CEO will help turn around the company. Stock is attempting to deliver a break above the $192 resistance zone, which has been limited upward moves since late-March 2024. Source: xStation5
