News

Boeing Reports Strong Fourth Quarter Results

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4.6

Andrew R. Michaud

• January 31, 2024

Shares of Boeing Co. (BA) edged 0.2% higher in premarket trading Wednesday, following the release of their impressive fourth-quarter results. Despite not providing a 2024 outlook, the aerospace and defense giant outperformed expectations, particularly in its commercial airplanes business.

Financial Highlights

• Net losses decreased significantly to $2.22 billion, or $3.67 a share, compared to $4.94 billion, or $8.30 a share, in the previous year.
• Excluding nonrecurring items, core per-share losses amounted to 47 cents, surpassing the FactSet loss consensus of 78 cents.
• Revenue experienced a solid growth of 10.2%, reaching $22.02 billion, exceeding the FactSet consensus of $21.14 billion.

Segment Performance

• Commercial airplanes revenue saw a notable increase of 13.1% to $10.48 billion, outperforming the FactSet consensus of $9.98 billion.
• Defense, space, and security revenue also showed strong results with a 9.1% rise to $6.75 billion, surpassing expectations of $6.16 billion.

Free Cash Flow and Future Outlook

Boeing reported free cash flow of $3.0 billion, well above the FactSet consensus of $1.91 billion.

As mentioned in the company's statement, Boeing remains committed to cooperating transparently with the FAA following the Alaska Airlines Flight 1282 accident involving a 737-9.

Market Performance

Despite safety-related groundings affecting their 737 aircraft, Boeing's stock has experienced a 7.3% gain over the past three months. However, in January alone, shares have fallen by 23.1%. By comparison, the Dow Jones Industrial Average (DJIA) has rallied 16.4% over the same period.