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2022-01-26 17:07

Shares of Boeing Co are down 5.0% on Wednesday after once the world’s largest airplane manufacturer said it lost more money in the fiscal fourth quarter. Its free cash flow, however, was still positive.
Q4 results
Boeing (NYSE: BA) reported $4.14 billion in net loss that translates to $7.02 per share. In the comparable quarter of last year, its net loss stood at a sharply higher $8.42 billion or $14.65 per share. Adjusted for one-time items, Boeing lost $7.69 per share.

The American multinational generated $14.79 billion in revenue that represents an annualized growth of 3.3%. According to FactSet, experts had forecast 36 cents of per-share loss only on $16.54 billion in revenue. According to CEO David Calhoun:

2021 was a rebuilding year for us as we overcame hurdles and reached key milestones across our commercial, defense and services portfolios. We increased 737 MAX production and deliveries, and safely returned the 737 MAX to service in nearly all global markets. As the commercial market recovery gained traction, we also generated robust commercial orders, including record freighter sales.

Other notable figures
At $4.75 billion, Boeing’s commercial aerospace revenue came in 0.5% up on a year-over-year basis, but significantly below analysts’ estimates of $5.58 billion. Revenue from defence, space, and security tanked 13.5% in the recent quarter – also below forecasts. The NYSE-listed company had recorded negative $4.27 billion in free cash flow a year ago, which turned into positive $494 million in Q4, while experts were still at negative $111.6 million. BA is still down nearly 30% from its high in March 2021.

CEO Calhoun’s remarks
According to CEO Calhoun, Boeing is in talks with the FAA and is committed to resuming 787 deliveries. In the earnings press release, he said:

On the 787 program, we're progressing through a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications. While this continues to impact our near-term results, it is the right approach to building stability and predictability as demand returns for the long term. Across the enterprise, we remain focused on safety and quality as we deliver for our customers and invest in our people and in our sustainable future.

Bullish calls on Boeing
Earlier in January, Sand Hill’s Brenda Vingiello said Boeing was a great buy for 2022. She reiterated that international travel was yet to return; once it does after COVID restrictions are eased, the pent-up demand will serve as a catalyst for the stock.

Wells Fargo also turned bullish on Boeing late last year. Analyst Matthew Akers upgraded the stock to “overweight” in November with a price target of $272 that suggests a 40% upside from here. The Chicago-based company now has a market cap of $114.35 billion.