Commercial aerospace giant
reported a surprising gain for the second quarter of 2021. Shares are moving up for now.
Boeing (ticker: BA) reported earnings of 40 cents a share from $17 billion in sales. Wall Street was looking to lose 83 cents on $16.6 billion in revenue. No analyst had forecast a quarterly profit, according to FactSet. It’s a shocking result.
Shares are up 4.2% in premarket trading.
Dow Jones Industrial Average
futures are both nearly flat in Wednesday trading.
It’s a good result given the issues Boeing has faced, including Covid-19, the grounding and recertification of the 737 MAX, as well as the 787 quality issues that have halted delivery of those jets. In addition, Boeing burned about $700 million in cash during the quarter. Much less than the $2.8 billion that Wall Street had expected.
“We continued to make significant progress in the second quarter as we focus on driving stability in our business and transforming our business going forward,” CEO Dave Calhoun said in the company’s press release. “As our commercial market environment improves, we are closely monitoring COVID-19 cases, vaccine distribution and global trade as key indicators of the stability of our industry.”
Profit margins improved compared to the first quarter. In commercial aerospace, Boeing delivered 79 aircraft in the second quarter, compared to 77 in the first quarter. Only two more. However, operating loss was reduced from $856 million in the first quarter to $472 million in the second.
Defense division profit margins went from 5.6% to 13.9%. Service division margins went from 11.9% to 13.1%.
Boeing organizes a conference call at 10:30 a.m. East to discuss the results. The pace of improvement will be a high priority for investors and analysts.
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