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boeing (B.A. 5.86%) The stock was up 6.3% as of 11:30 a.m. ET, beating Wednesday morning results.
Analysts had expected the defense and aerospace giant to report a loss of $0.72 per share, adjusted for one-time items, on revenue of $19.5 billion. All told, Boeing’s loss was “only” $0.47 per share, and its revenue was billions of dollars more than expected, collecting $22 billion in the fourth quarter.
Boeing’s 2023 sales and profits
Boeing delivered 157 commercial aircraft to customers in the fourth quarter and recorded net orders of 611 aircraft, indicating strong prospects for future sales growth. The company’s quarterly revenue increased 10% year over year. Operating profit margin and operating profit turned from negative to positive.
After all, Boeing still ended up losing money in the quarter. However, when calculated according to Generally Accepted Accounting Principles (GAAP), that loss is: many Better than any of the “adjusted” numbers above.
A year ago, Boeing posted a GAAP loss of $1.06 per share. The loss for the fourth quarter of 2023 was just $0.04 per share.
Boeing in 2024
Don’t get me wrong.Boeing is still many As companies struggle to deal with the fallout from recent PR disasters, there are many issues to address. (If your airplane has a reputation for parts falling off at 16,000 feet, that doesn’t make it any easier to sell.) However, on the financial front, Boeing delivered an excellent performance in the fourth quarter of 2023, continuing its trend of improving numbers throughout the year.
For all of 2023, Boeing showed 17% revenue growth and a loss of $3.67 per share. However, this loss was less than half of the loss in 2022, and operating cash flow increased by 70%.
The key going forward will be for Boeing to react quickly and decisively to nip the latest scandal in the bud and maintain the momentum it has gathered into 2023. In this regard, CEO Dave Calhoun said, “Our company-wide focus is on taking comprehensive action to strengthen quality.” Boeing. “The company is taking steps to improve the 737, including requiring additional inspections within factories and at key suppliers, supporting increased oversight from airline customers, and suspending 737 production for one day to refocus employees on quality.” We are taking immediate steps to strengthen the quality of our program.”
The downside to this for investors is that while Boeing is committed to the quality of its repairs, it has been quiet about the numbers for some time. Management declined to provide guidance for sales or profits in 2024, although it said it remains confident it will meet its financial targets for 2025 and 2026.
For at least the next few quarters, investors will simply be able to fly comfortably while Boeing repairs its 737s.
Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any stocks mentioned. The Motley Fool has a disclosure policy.
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