Outcomes report Boeing (BA) Q1 2021: One other loss

Boeing posted its sixth straight quarterly loss on Wednesday as the pandemic continues to weigh on jetliner demand, but expects 2021 to be a tipping point as more people are vaccinated.

Here are the numbers:

  • Loss per share: $ 1.53 adjusted. Analysts had expected a loss per share of $ 1.16, according to Refinitiv, but it’s unclear whether the numbers are comparable.
  • Revenue: $ 15.22 billion versus $ 15.02 billion expected by analysts surveyed by Refinitiv.

The aircraft maker posted a net loss of $ 561 million on revenue of $ 15.2 billion in the first three months of 2021, 10% less than last year but ahead of analyst estimates.

On an adjusted basis per share, Boeing lost $ 1.53, a smaller loss than the adjusted loss of $ 1.70 per share reported a year ago. The company reported a $ 318 million input tax fee related to issues with a supplier on its modified 747 aircraft, which will serve as Air Force One.

Boeing shares fell more than 1% in premarket trading after reporting results.

Boeing struggled with the impact of the pandemic on travel and aircraft sales, as well as expanding its best-selling 737 Max aircraft after 346 people were killed in two fatal accidents. Regulators started removing grounding in November 2020.

Revenue in the commercial aircraft unit declined 31% year over year to $ 4.27 billion, although deliveries for new aircraft increased from 50 to 77. Boeing also saw new sales from customers like United and Southwest Airlines to return to plans to upgrade their fleets and prepare for growth. In March, Boeing’s new aircraft orders exceeded cancellations for the first time since 2019.

Boeing reiterated its forecast to increase production of the 737 Max to 31 per month in early 2022 and its estimate of shipping its first 777X wide-body jet in late 2023.

Boeing resumed delivery of its 787 wide-body aircraft last month after reporting production issues last year. Sales have been slow, however, as long-haul international travel continued to decline sharply in the pandemic.

In a presentation, the company cited the pace of vaccinations and infection rates, US-China relations, and the remaining 737 Max approvals such as China as one of the risks to aircraft demand.

“As the global pandemic continues to challenge the broader market environment, we see 2021 as a major turning point for our industry as vaccine distribution accelerates and we work together across governments and industries to enable a robust recovery,” said CEO Dave Calhoun in the publication of results.

Boeing raised Calhoun’s retirement age by five years to 70 last week and announced that its CFO and longtime managing director Greg Smith, who has been seen as his successor, will retire this summer.

Boeing stock gained around 13% that year at close of trading on Tuesday, while the S&P 500 was up 11.5%.

Boeing executives will call to discuss the findings at 10:30 a.m. ET.

Investors will look to Boeing’s outlook for the pace of aircraft delivery, which is vital as airlines and other customers pay most of the aircraft price when manufacturers hand them over.

The Chicago-based company is also likely to provide an update on grounding some 737 Max jetliners due to electrical issues.

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