Boeing posts quarterly loss, but stock surges as aircraft deliveries drive up cash

Earnings

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An employee walks past a Boeing 737 Max aircraft seen parked at the Renton Municipal Airport in Renton, Washington, January 10, 2020.
Lindsey Wasson | Reuters

Boeing‘s second-quarter results topped analyst expectations thanks to a pickup in commercial aircraft deliveries as the manufacturer increases production.

The company generated $2.6 billion of free cash in the quarter and reiterated its full-year guidance of between $3 billion and $5 billion of free cash flow.

Its shares were up about 4% in premarket trading after releasing results.

Here’s how the company performed during the period ended June 30, compared with Refinitiv consensus estimates

  • Adjusted loss per share: 82 cents vs. 88 cents.
  • Revenue: $19.75 billion vs. $18.45 billion

Boeing and main rival Airbus have both struggled to increase aircraft production in the wake of the pandemic as some airlines face longer waits for new jets, just as travel demand rebounds.

Boeing said Wednesday that it is transitioning to higher production of its best-selling Max aircraft, at a pace of 38 jets a month, up from 31 a month — a plan it outlined earlier this year.

“With demand strong across our key markets, it is important that we stay focused on execution and on driving stability in our factories and supply chain to ensure we meet our customer commitments,” CEO Dave Calhoun said in a message to employees on Wednesday.

Boeing’s second-quarter revenue jumped 18% from a year ago to $19.75 billion, but the company still reported a net loss of $149 million, or 25 cents per share. That compares with a profit of $160 million, or 32 cents per share, a year ago, with the most recent quarter’s results weighed down by charges in Boeing’s defense and space units.

On an adjusted basis, the company reported a loss of $390 million, or 82 cents per share.

This story is developing. Please check back for updates.