important point
- Boeing is expected to report fourth-quarter adjusted earnings of 41 cents per share on January 24.
- Shares have surged more than 70% since the end of September as global air travel recovered.
- The company is generating cash again and forecasts free cash flow of $3 billion to $5 billion in 2023.
- Boeing’s defense division lost $2.8 billion in the third quarter, but commercial aircraft deliveries increased in 2022 despite supply chain disruptions.
Aircraft maker Boeing (BA) will report fourth-quarter earnings as cash flow and stock rise as it rides global travel recovery, analysts forecast first profitable quarter in six It’s a schedule.
Boeing is the world’s second-largest commercial jet supplier, according to estimates compiled by Visible Alpha, and is expected to post an adjusted net income of 41 cents per share in a report before trading began on Jan. 25. there is The company reported a loss per share of $7.69 for the year-ago quarter and $15.25 for the final quarter of 2020.
Boeing’s business has run out of more than $24 billion in cash over the three years to 2021. The pandemic and safety issues have resulted in a lengthy grounding of two of the company’s newest and most important jet models, the 737 MAX and the 787 Dreamliner.
Those debacles that put Boeing behind rival Airbus in global market share are now in the rearview mirror. In August, Boeing resumed deliveries of the Dreamliner, which had been suspended for most of the previous two years due to a manufacturing defect. United Airlines (UAL) placed an order for 100 787s in December and gave the Dreamliner a vote of confidence with the option to buy 100 more. United Airlines also purchased 100 of his 737 MAXs, which were grounded after two of his crashes in 2019 attributed to software flaws.
Boeing is struggling to keep up with surging demand for its aircraft as it faces supply chain issues. Grounded Dreamliners must be recertified in a more cumbersome process than initial assembly prior to delivery. Despite these challenges, Boeing has delivered 480 commercial aircraft in 2022. This is a 41% increase over the previous year. The company delivered 152 commercial aircraft in the fourth quarter, up from 112 in the third quarter.
The company expects free cash flow of $2.5 billion in the fourth quarter and $3 billion to $5 billion in fiscal 2023, putting it on track to reach its goal of $10 billion annually by 2026.
Next week’s earnings call could provide an update on the company’s efforts to fix its recently restructured defense business. Fixed cost program overruns cost him $2.8 billion in the most recent quarter.
Shares have been on a downward trend lately, jumping 73% from Sept. 30 to Wednesday, hitting an 11-month high this week. Boeing’s stock is down 4% over the past year, while the S&P 500’s industrial sector is down 5%.
BA and S&P 500 Industrial Stocks One Year Total Returns
Boeing key stats
| estimate Q4 FY2022 |
Q4 FY2021 | 4th Quarter 2020 | |
| Adjusted earnings per share ($) | 0.41 | -7.69 | -15.25 |
| Earnings ($B) | 20 | 14.8 | 15.3 |
| Delivered commercial aircraft | 152 | 99 | 59 |
Source: Visible Alpha
key metrics
The commercial aircraft delivery demonstrates Boeing’s success in meeting product demand in its most important business segment. The company delivered a record 806 aircraft in 2018 before the 737 MAX was grounded.
