Boeing's Q4 profits miss, but company beats on free cash flows
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Boeing Co.
$157.62
11:04 06/09/24
Boeing missed analysts' estimates for both its top and bottom line growth in its fourth quarter.
Dow Jones I.A.
40,345.41
04:30 15/10/20
Nonetheless, its commercial airplane arm rebounded and together with steady growth at its services division contributed to a second straight quarter of positive free cash flow.
For the fourth quarter ended on 31 December, the manufacturer posted an adjusted loss per share of $1.75 (Consensus: 17 cents) or of $663m in GAAP terms amid nearly $800m in extraordinary items.
That was nevertheless down from an adjusted loss per share of $7.69 one year before.
Total sales over the latest three-month stretch were ahead by 35% versus a year ago to reach $19.98bn, narrowly missing the consensus for $20.32bn.
Free cash flow for the full-year swung from roughly -$4.4bn in 2021 to $2.29bn, even as its operating margins worsened from -4.7% to -5.3%.
For the quarter, free cash flows ran at $3.13bn, versus $494m during the comparable year-earlier period and ahead of analysts' forecasts for $2.9bn
Operating margins did improve in Commercial Airplanes, from -33.2% to -9.2%, but in Defense, Space & Security they worsened from 5.8% to -15.3%.
Global Services on the other hand saw operating margins rise from 12.4% to 15.5% with topline growth of 8%.
Commercial Airplanes, Defense, Space & Security, and Global Services accounted for approximately 38%, 34%, and 25% of the group's total sales.
On the outlook for 2023, heavily indebted Boeing reiterated guidance for between $3-5bn of free cash flow.
Net debt at quarter's end stood at $57bn, against $57.2bn one year before.
The company's pile of cash and marketable securities however grew from $14.3bn to $17.2bn.
Shares of Boeing were trading 2.49% lower to $206.70 in trading before the opening bell.