Boeing Q3 Earnings Lag Estimates, Revenues Decrease Y/Y

The Boeing Company BA incurred an adjusted loss of $10.44 per share in the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of $10.34. The bottom line deteriorated from the year-ago quarter’s reported loss of $3.26 per share. Including one-time items, the company reported a GAAP loss of $9.97 per share, wider than the year-ago quarter’s reported loss of $2.70.The year-over-year deterioration can be attributed to the adverse impacts of the International Association of Machinists and Aerospace Workers (IAM) work stoppage and previously announced charges on commercial and defense programs.The Boeing Company Price, Consensus and EPS Surprise The Boeing Company price-consensus-eps-surprise-chart | The Boeing Company QuoteRevenuesRevenues amounted to $17.84 billion, which came in line with the Zacks Consensus Estimate. The top line also decreased 1% from the year-ago reported figure of $18.10 billion.The year-over-year deterioration was due to dismal performance by the Commercial Airplanes segment.Total BacklogBacklog at the end of the third quarter of 2024 totaled $510.51 billion, down from $515.87 billion recorded at the end of the second quarter.Segmental PerformancesCommercial Airplane: Revenues in this segment declined 5% year over year to $7.44 billion, reflecting the impact of the IAM work stoppage. The segment incurred an operating loss of $4.02 billion, indicating a deterioration from the year-ago quarter’s reported operating loss of $0.68 billion. This was due to pre-tax charges of $3 billion from the 777X and 767 programs as well as higher period expenses. During the quarter under review, Boeing delivered 116 commercial planes. The figure rose 10% year over year.The backlog for this segment remained healthy, with more than 5,400 airplanes valued at $428 billion.Boeing Defense, Space & Security (“BDS”): The segment recorded revenues of $5.54 billion, indicating a year-over-year rise of 1%. It incurred an operating loss of $2.38 billion, implying a deterioration from the year-ago quarter’s operating loss of $0.92 billion. This deterioration was due to pre-tax charges of $2 billion from the T-7A, KC-46A Tanker, Commercial Crew, and MQ-25 programs. BDS recorded a backlog of $62 billion, 28% of which comprised orders from international clients.Global Services: Revenues in this segment improved 2% year over year to $4.90 billion, driven by higher commercial volume. This unit generated an operating income of $834 million, which improved from $784 million in the prior-year quarter.Financial ConditionBoeing exited third-quarter 2024 with cash and cash equivalents of $9.96 billion, and short-term and other investments of $0.51 billion. At the end of 2023, the company had cash and cash equivalents of $12.69 billion, and short-term and other investments worth $3.27 billion.Long-term debt amounted to $53.18 billion, up from $47.10 billion recorded at the end of 2023.The company’s operating cash outflow as of Sept. 30, 2024, was $8.63 billion against operating cash inflow of $2.58 billion as of Sept. 30, 2023.Free cash outflow totaled $10.21 billion at the end of third-quarter 2024 against free cash inflow of $1.48 billion at the end of third-quarter 2023.Zacks RankBoeing currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Defense ReleasesHexcel Corporation HXL reported third-quarter 2024 adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago figure of 38 cents. The bottom line also surpassed the Zacks Consensus Estimate by 2.2%.In the third quarter, the company’s net sales totaled $456.5 million, which beat the Zacks Consensus Estimate of $456.2 million by 0.1%. The top line also witnessed an improvement of 8.8% from the year-ago quarter’s reported sales of $419.5 million.Lockheed Martin Corporation LMT reported third-quarter 2024 adjusted earnings of $6.84 per share, which beat the Zacks Consensus Estimate of $6.47 by 5.7%. The bottom line also rose 1% from the year-ago quarter's recorded figure of $6.77.Net sales were $17.10 billion, which missed the Zacks Consensus Estimate of $17.28 billion by 1%. The top line, however, increased 1.3% from $16.88 billion reported in the year-ago quarter.RTX Corporation’s RTX third-quarter 2024 adjusted earnings per share of $1.45 beat the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago quarter’s level of $1.25.RTX’s third-quarter sales totaled $20.09 billion, which surpassed the Zacks Consensus Estimate of $19.91 billion by 0.9%. The top line also surged a solid 49.2% from $13.46 billion recorded in the third quarter of 2023.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Hexcel Corporation (HXL): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks