Boeing Reports Q1 2024 Financial Results, Beats Wall Street Expectations Despite Challenges

Boeing Co. (NYSE: BA) reported its financial results for the first quarter of 2024, surpassing Wall Street expectations on both earnings per share (EPS) and revenue. The aerospace giant posted a narrower adjusted loss of $1.13 per share, beating analysts' estimates of a $1.63 loss per share. Revenue for the quarter came in at $16.6 billion, down 8% year-over-year but above the projected $16.2 billion.

Despite the better-than-expected results, Boeing faced significant challenges in the quarter. The company's commercial airplanes business saw a sharp 31% drop in revenues, largely due to lower 737 deliveries following the high-profile Alaska Airlines 737 MAX door blowout incident in January. In response, Boeing slowed production to drive improvements in quality and engaged independent experts to review its quality control processes.

Why this matters: Boeing's quarterly performance and ongoing challenges have far-reaching implications for the aerospace industry, its suppliers, and the broader economy. As a major U.S. manufacturer and defense contractor, Boeing's ability to navigate these obstacles and restore confidence in its products is vital for the company's future and the many stakeholders relying on its success.

CEO Dave Calhoun acknowledged the difficulties ahead, stating, "The first-quarter results reflect the immediate actions taken to slow down 737 production to drive improvements in quality. We will take the time necessary to strengthen our quality and safety management systems, which will position us for a stronger and more stable future." Calhoun, who plans to step down by the end of 2024, emphasized Boeing's commitment to ensuring regulators, customers, employees, and the flying public are confident in the company.

Boeing's total backlog grew to $529 billion in the quarter, highlighting potential future revenue streams. The company also reported a significant negative free cash flow of $3.9 billion, a larger cash burn than the $786 million in the same period last year. Despite the challenges, analysts maintain a cautiously optimistic outlook on Boeing's stock, with a moderate buy consensus rating.

Looking ahead, Boeing expressed confidence in stabilizing its supply chain but expects a slower increase in the production rate and deliveries of its 787 widebody jets due to supplier shortages. The company declined to provide specific financial guidance for 2024 as it works to address the identified issues and strengthen its quality and safety management systems.

Key Takeaways

• Boeing reported better-than-expected Q1 2024 results, with narrower losses and higher revenue.
• The commercial airplane business saw a 31% revenue drop due to 737 MAX issues, leading to a slowdown in production.
• Boeing engaged experts to review quality control processes and aims to restore confidence in its products.
• Boeing's backlog grew to $529B, but it faced a significant negative free cash flow of $3.9B.
• Boeing expects a slower 787 production increase due to supplier shortages and declined to provide 2024 guidance.