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Thursday, October 1st, 2020

Boeing : To Report Q1 Earnings

by April 27, 2017 General

American airplane manufacturer Boeing Co. is set to deliver its first-quarter earnings report before the opening bell on Wednesday.

Weak Deliveries

Collectively analysts have forecasted that the company would give lower delivery numbers for the quarter due to an outlook from the company itself that first quarter deliveries have dropped from 176 last year to 169 while individual deliveries for their military aircraft, the 737, and 777 models decreased but has recorded two successful deliveries of the 787 Dreamliner.

The single-aisle 737 jet deliveries declined from 121 to 113 while 777 and 787 Dreamliners shipments stands at 21 and 32 compared with last years delivery of 23 and 30 units respectively during the same quarter. Despite the weak outlook for their deliveries, Boeing currently holds a good number of contracts on both its commercial and defense products where the value of the recent orders is standing at almost $3.3 billion. Just recently, Boeing also won an order for 39 of their wide-body airplanes valued at around $13.8 billion from Singapore Airlines.

In the defense sector, Boeing has also secured a modification contract amounting to $3.28 billion from the U.S. Army and another modification contract valued at $2.1 billion from the U.S. Air Force for the KC-49 Lot. These contracts are expected to be reflected in the companys fourth-quarter earnings.

What To Expect From Earnings

In the previous quarter, Boeing Co. which is currently the leader in commercial aircraft manufacturing has delivered a rise of 5.56% in their earnings beating consensus estimates at an average beat of 21.42%.

While estimates show that analysts have projected a 10% rise in their earnings at around $1.91 per share, the revenue is expected to decline by 2.7% at $21.44 billion. Other consensus estimates show that expected total revenue ranges at around $20.9 billion and $21.56 billion.


When it comes to the companys shares, Boeing has risen by around 16.94% since the beginning of the year compared with the 6% it gained on the S&P 500 and has recorded an all-time high at $185.71 last March.

Investors would also be looking at the companys cash flow and to how any potential revenue, earnings, or delivery decline could impact the operating and free cash flow negatively.

Boeing To Launch 737 MAX 10X

According to reports, Boeing has recently been able to sell a problem with the so-called 737 MAX 10X landing gear and is now set to be launched by the company soon. This would be a new version of their 737 which has been Boeings best-selling unit for the past fifty years. The solved issue would allow Boeing to work on the new MAX familys longest member of narrow-body jets without the need to add costs and delay their delivery period on 2020.

Reports also show that the company is now in talks with potential buyers but has not arrived an official launch decision regarding the jet. Investors are hoping that an official announcement would be given during the earnings call. Other sources reveal that Boeing is expecting to sell 1,000 of the long-range unit.

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