The Boeing Company BA

$BA | Boeing Q3'24 Earnings Highlights:

? Revenue: $17.84B (Est. $18.23B) ?; DOWN -1% YoY
? Core Loss per Share: ($10.44) (Est. Loss of $10.33) ?
? Operating Cash Flow: -$1.35B (Est. -$1.99B) ?
? Free Cash Flow: -$1.96B (Est. -$1.87B) ?; DOWN from -$310M YoY
? Total Backlog: $510.5B; DOWN -0.4% YoY

Q3 Segment Performance:
Commercial Airplanes:
? Revenue: $7.44B (Est. $7.66B) ?; DOWN -5% YoY
? Operating Loss: -$4.02B (Est. -$3.15B) ?; UP from -$678M YoY
? Operating Margin: (54.0%) (vs. (8.6%) YoY)
? Deliveries: 116 airplanes; UP +10% YoY

• 737 Deliveries: 92 (UP +31% YoY)
• 787 Deliveries: 14 (DOWN -26% YoY)
• 777 Deliveries: 4 (DOWN -50% YoY)
  ? Backlog: $427.7B; DOWN -3.3% YoY from $442.4B

Defense, Space & Security:
? Revenue: $5.54B (Est. $5.6B) ?; UP +1% YoY
? Operating Loss: -$2.38B (Est. -$1.94B) ?; UP from -$924M YoY
? Operating Margin: (43.1%) (vs. (16.9%) YoY)
? Backlog: $61.6B; UP +3% YoY

Global Services:
? Revenue: $4.90B (Est. $5.02B) ?; UP +2% YoY
? Operating Earnings: $834M (Est. $853.2M) ?; UP +6% YoY
? Operating Margin: 17.0% (vs. 16.3% YoY)
? Backlog: $20.4B; UP +3% YoY

Operational Highlights:
Commercial Program Charges:
? $3.0B in charges on 777X and 767 programs
? 787 production rate: 4/month, increasing to 5/month by year-end

Defense Program Charges:
? $2.0B across T-7A, KC-46A Tanker, Commercial Crew, and MQ-25 programs

Notable Deliveries:
? Delivered the first MH-139A helicopter to the U.S. Air Force

Contracts:
? Secured two E-7A Wedgetail aircraft for the U.S. Air Force
? Key agreements with All Nippon Airways and U.S. Air Force

Financial Position:
? Cash and Investments: $10.5B (DOWN from $12.6B at Q2'24 end)
? Total Debt: $57.7B (UP from $53.0B YoY)
? Credit Facilities: $20.0B (including a new $10.0B short-term facility)
? Backlog: $510.5B incl. over 5,400 Commercial Airplanes (DOWN -1.9% from $520.2B at end of 2023)

CEO Kelly Ortberg's Commentary:
?"It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again. Going forward, we will be focused on fundamentally changing the culture, stabilizing the business, and improving program execution, while setting the foundation for the future of Boeing."

? We need to be on the factory floors, in the back shops and in our engineering labs; We need to know what’s going on; Boeing must overhaul its culture to end a multiyear crisis that has shaken the confidence of customers and investors - FT interview

$BA beats estimates:
Loss per share: $10.44 adjusted. That may not compare with an adjusted loss of $10.52 expected by LSEG.
Revenue: $17.84 billion vs $17.82 billion expected

$BA deliveries are up

$BA Estimate -10 which already respond in current price. The ER just needs to show a little better to make it jump.

$BA monthly deliveries already improved since new CEO 2 months ago

The company $BA expects to report third quarter revenue of $17.8 billion, GAAP loss per share of ($9.97), and operating cash flow of ($1.3) billion. Cash and investments in marketable securities totaled $10.5 billion at the end of the quarter.

"While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company," said Kelly Ortberg, Boeing president and chief executive officer. "These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term. We are also focusing on areas that are critical to our future and will ensure we have the balance sheet necessary to invest, support our people and deliver for our customers."

https://boeing.mediaroom.com/2024-10-11-Boeing-Reports-Preliminary-Third-Quarter-Results

There’s a gap @ $171 that $BA will fill

$BA continues to delivery planes

https://www.planespotters.net/deliveries

New $BA CEO already turning the ship to a right direction, laying off 10% of workforce in non-core businesses, selling non-core assets, and looking forward to developing its bread-and-butter, plane manufacturing.

With newer generations opting for experiences versus buying a house, there will be an ever increasing demand for commercial airplanes and customers don’t yet trust Chinese manufacturers in this space $BA locked and loaded

$BA and $TSLA may be the perfect partnership with @elonmusk offering manufacturing efficiencies in Boeing factories, launching Optimus en mass?