Aerospace giant Boeing (BA -1.37%) released first-quarter 2024 earnings on Wednesday, April 24, that exceeded expectations. Boeing managed a non-GAAP core loss per share of $1.13 and revenue of $16.6 billion. Analysts' consensus had the adjusted loss per share at $1.65 and predicted $15.2 billion in revenue.
This better-than-expected performance indicates Boeing is handling the slew of operational and market challenges it faces. It's also securing pivotal new commercial orders that it hopes will help it regain its competitive edge.
| Metric | Q1 2024 | Analyst Estimate | Q1 2023 | Change (YOY) |
|---|---|---|---|---|
| Revenue | $16.6 billion | $15.2 billion | $17.9 billion | (7.38%) |
| Core loss per share (Non-GAAP) | ($1.13) | ($1.65) | ($1.27) | N/A |
| Commercial airplane deliveries | 83 | N/A | 130 | (36%) |
| Defense, Space & Security Revenue | $6.95 billion | N/A | $6.54 billion | 6% |
YOY = Year over year.
Boeing's business overview
Boeing stands as a leader in the aerospace industry, crafting a wide array of commercial jetliners, military aircraft, and space systems. With extensive global operations, the firm is heavily invested in innovation, sustainability, and enhancing global connectivity.
Boeing's recent focus involves navigating supply chain volatility, adhering to stringent regulatory standards, and securing significant new orders to improve its operational and financial sustainability. These strategic orientations are vital for fulfilling existing order backlogs and attracting new business in a fiercely competitive market.
Notable Q1 2024 highlights
Boeing's first quarter was marked by several challenges. The company made strategic decisions to scale back production rates, particularly for the 737 models, so it could better emphasize product quality and adherence to enhanced safety standards. This move will impact short-term delivery schedules, but it is aimed at reinforcing Boeing's long-term market position by ensuring the highest levels of reliability and customer satisfaction.
The quarter also saw Boeing securing 125 net new orders, including an order for 85 737-10 airplanes from American Airlines. This not only signals strong market demand for Boeing's offerings but also boosts future revenue streams. Boeing has a backlog of more than 5,600 commercial plane orders valued at $448 billion. Its overall backlog is valued at nearly $529 billion.
Boeing continues to work on navigating through the complexities of global supply chain disruptions and regulatory scrutiny. Efforts to streamline operations and enhance manufacturing efficiency are underway, with a focus on meeting delivery commitments and maintaining product excellence.
Looking ahead
Looking forward, Boeing's management remains optimistic about its strategic direction and financial recovery. Key to this outlook is the emphasis on stabilizing production rates, resolving outstanding regulatory and technical challenges, and delivering on its significant backlog of orders. Management is focused on strengthening relationships with suppliers, ensuring the well-being and expertise of its workforce, and continuing to innovate in aerospace technology.
Investors and stakeholders should closely monitor Boeing's progress in addressing supply chain bottlenecks, regulatory compliance, and safety enhancements. Continued success in these areas, coupled with robust market demand for commercial aircraft, could position Boeing favorably for future growth and recovery.
