Boeing stock drops toward 17-month low after much wider-than-expected loss, big revenue miss


Shares of Boeing Co. BA, -5.04% dropped 3.2% toward a 17-month low in premarket trading Wednesday, after the aerospace and defense giant reported a much wider-than-expected first-quarter loss and big misses in revenue and free cash flow, as disappointing commercial airplanes and defense results offset strength in global services. The net loss more than doubled to $1.24 billion, or $2.06 a share, from $561 million, or 92 cents a share, in the year-ago period. Excluding nonrecurring items, the per-share loss widened to $2.75 from $1.53, compared with the FactSet loss consensus of 25 cents. Revenue fell 8.1% to $13.99 billion, below the FactSet consensus of $16.02 billion. Among Boeing’s business segments, revenue for Commercial Airplanes fell 2.5% to $4.16 billion, well below the FactSet consensus of $5.42 billion; Defense, Space & Security revenue sank 23.6% to $5.48 billion, missing expectations of $6.69 billion; and Global Services revenue grew 15.1% to $4.31 billion to beat expectations of $4.09 billion. The company said Commercial Airplanes results were hurt timing of wide-body aircraft deliveries and “abnormal costs and period expenses,” which included charges for impacts of the Ukraine war and higher research expenses. Free cash flow improved to negative $3.57 billion from negative $3.68 billion last year, but missed the FactSet consensus of $2.92 billion. The stock, which closed Tuesday at a 17-month low, has dropped 17.0% year to date, while the Dow Jones Industrial Average DJIA, -2.38% has slipped 8.5%.

Source: Marketwatch

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