Boeing Endures Another Tough Quarter

Mounting losses and delays create big challenges for the company through the first part of 2022.

Michael Wildes

Wednesday, April 27, 2022 at 04:50 PM ET

Verified

Boeing CEO Dave Calhoun remains optimistic about his company's future. [File photo: Shutterstock]

Key Takeaways:

Boeing significantly missed first-quarter earnings expectations, reporting a $1.24 billion loss (double last year's) and an 8.1% revenue decrease to $13.9 billion due to lower defense and commercial volumes.
The company announced a costly delay in 777-9 jetliner production until 2025, estimated to incur $1.5 billion in additional expenses.
While commercial and defense segments faced revenue declines and substantial charges on programs, the global services segment saw a 15% increase in revenue.
Despite CEO optimism, analysts questioned the company's direction regarding recurring program issues, leading to a negative market reaction with shares dropping to a 17-month low.

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Boeing (NYSE: BA) announced in its first-quarter earnings call Wednesday that it missed earnings expectations on multiple levels. Losses were more significant than expected and the company failed to achieve revenue projections and free cash flow expectations due to lower defense and commercial volumes, though the company said those challenges were partially offset by global services.

For the quarter, the company lost $1.24 billion, twice as much as the company lost during the first quarter of 2021. Revenue also decreased to $13.9 billion, an 8.1 percent year-over-year drop, despite analysts’ expectation of $16.02 billion.