Boeing Shares Pop on Q2 Cash Flow Beat and Reiterated Guidance
2022.07.27 17:54
Boeing (BA) Shares Pop on Q2 Cash Flow Beat and Reiterated Guidance
By Senad Karaahmetovic
Shares of Boeing (NYSE:BA) are up over 3% despite the company reporting soft Q2 top and bottom line results.
Revenue came in at $16.68 billion to miss on the expected $17.55 billion while Boeing reported a core loss per share of $0.37, again worse than the expected $0.01 per share.
However, BA shares soared after the company reported a negative adjusted free cash flow of $182 million, much better than the expected -$520 million.
“We made important progress across key programs in the second quarter and are building momentum in our turnaround,” said Dave Calhoun, Boeing President and Chief Executive Officer.
Boeing reported operating cash flow for the second quarter that beat the average analyst. Moreover, the company reiterated its prior guidance that it expects to reach a positive operating cash flow for 2022.
“As we begin to hit key milestones, we were able to generate positive operating cash flow this quarter and remain on track to achieve positive free cash flow for 2022. While we are making meaningful progress, we have more work ahead. We will stay focused on safety, quality and transparency, as we drive stability, improve performance, and continue to invest in our future,” Calhoun added.
BA also said that its 787 team is in the final stages of preparing to restart deliveries. On the other hand, the reported backlog of $372 billion includes over 4,200 commercial airplanes, Boeing added.
A Vertical Research Partners analyst said the Q2 results were “nothing special,” although the market liked the reiteration of the 2022 FCF guidance.
“It could be that FCF in 2022 is now likely to be less positive than previously hoped thanks to continued cost pressures in Defense, but at least Boeing continues to think that it can end up on the right side of the ledger for the year. We expect the call this morning to be digging into the puts and takes in this cash forecast, such as 787 timing, and for any indication of what all this means for 2023 and beyond,” the analyst told clients in a note.
A Goldman Sachs analyst is more positive as he believes the Q2 earnings report brought “a number of positive updates.”
