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The Boeing Company BA reported adjusted earnings of 40 cents per share for second-quarter 2021 in contrast to the Zacks Consensus Estimate of a loss of 65 cents. The bottom line also improved significantly from the year-ago quarter’s loss of $4.79.
Including one-time items, the company reported GAAP earnings of $1 per share against a loss of $4.20 incurred in the second quarter of 2020.
The year-over-year bottom line improvement can be attributed to higher commercial volume and lower commercial airplanes period costs.
The Boeing Company Price, Consensus and EPS Surprise
The Boeing Company price-consensus-eps-surprise-chart | The Boeing Company Quote
In the quarter under review, Boeing’s revenues amounted to $16,998 million, which missed the Zacks Consensus Estimate of $17,027 million by 0.2%. The top line however improved 44% from the year-ago quarter’s figure of $11,807 million.
This improvement in the top line was driven by higher commercial airplanes and services volume.
Backlog at the end of second-quarter 2021 was $363.5 billion, slightly down from $364 billion at the end of first-quarter 2021.
Commercial Airplane: Revenues at this segment improved a massive 268% to $4.02 billion due to higher commercial jet deliveries. The segment incurred operating loss of $472 million compared with loss of $2.76 billion in the year-ago quarter.
Boeing delivered 79 commercial planes during the quarter under review, up 295% year over year.
Backlog for this segment remained healthy with over 4,100 airplanes valued at $285 billion.
Boeing Defense, Space & Security (BDS): This segment recorded revenues worth $6.88 billion in the second quarter, reflecting 47% year-over-year improvement, primarily driven by higher KC-46A Tanker and P-8A Poseidon volume.
Meanwhile, this unit generated operating income of $958 million compared with operating income of $600 million in the year-ago quarter.
Backlog at BDS was $59 billion, 32% of which comprised orders from international clients.
Global Services: Revenues at this segment increased 17% to $4.07 billion higher commercial services volume.
Moreover, this unit generated operating income of $531 million against operating loss of $672 million in the year-ago quarter.
Boeing Capital Corporation (BCC): This segment reported quarterly revenues of $78 million compared with $69 million registered in the year-ago quarter.
At the end of second-quarter 2021, BCC's portfolio balance was $1.9 billion.
Boeing exited the second quarter with cash and cash equivalents of $8.27 billion, and short-term and other investments of $13.07 billion. At the end of 2020, the company had $7.75 billion of cash and cash equivalents, and $17.84 billion of short-term and other investments. Long-term debt amounted to $57.03 billion at the end of the second quarter, down from $61.89 billion at 2020 end.
Boeing’s operating cash outflow at the end of second-quarter 2021 was $3.87 billion compared with $9.59 billion at the end of second-quarter 2020.
Free cash outflow totaled $4.38 billion at the end of second-quarter 2021 compared with free cash outflow of $10.36 billion at the end of second-quarter 2020.
Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Raytheon Technologies’ RTX second-quarter 2021 adjusted earnings per share (EPS) of $1.23 outpaced the Zacks Consensus Estimate of 92 cents by 33.7%.
Lockheed Martin LMT reported second-quarter 2021 adjusted earnings of $7.13 per share, which surpassed the Zacks Consensus Estimate of $6.51 by 9.5%.
Hexcel Corporation HXL reported second-quarter 2021 adjusted earnings of 8 cents per share, which exceeded the Zacks Consensus Estimate of a penny.
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