>>> Boeing beats by $0.31, beats on revs, does not provide guidance; taking imme

Boeing beats by $0.31, beats on revs, does not provide guidance; taking immediate actions to strengthen quality on the 737 program (200.42)
  • Reports Q4 (Dec) core (non-GAAP) loss of $(0.47) per share, $0.31 better than the FactSet Consensus of ($0.78); revenues rose 10.2% year/year to $22.02 bln vs the $21.14 bln FactSet Consensus.
  • Note: Boeing typically provides full year operating cash flow and free cash flow guidance, but co did not provide guidance.
  • "While we report our financial results today, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day," said Dave Calhoun, Boeing president and chief executive officer. "As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders."
  • Segment Performance:
    • Commercial Airplanes Q4 segment revenue increased 13% yr/yr to $10.48 bln, driven by higher deliveries and favorable mix.
      • Co continues to cooperate transparently with the FAA following the Alaska Airlines Flight 1282 accident involving a 737-9. Commercial Airplanes is taking immediate actions to strengthen quality on the 737 program, including requiring additional inspections within its factory and at key suppliers, supporting expanded oversight from airline customers and pausing 737 production for one day to refocus its employees on quality.
      • Co has also appointed an outside expert to lead an in-depth independent assessment of Commercial Airplanes' quality management system, with recommendations provided directly to Calhoun and the Aerospace Safety Committee of Boeing's Board of Directors.
        • The 737 program continues to deliver airplanes and its production rate is now at 38 per month.
        • The 787 program production rate is now at five per month.
        • Commercial Airplanes delivered 157 airplanes during the quarter and backlog included over 5,600 airplanes valued at $441 billion.
    • Defense, Space & Security Q4 revenue rose 9% yr/yr to $6.75 bln. Fourth quarter operating margin was (1.5)%, primarily driven by $139 million of losses on certain fixed-price development programs. Results were also impacted by unfavorable performance and mix on other programs.
    • Global Services Q4 revenue rose 6% yr/yr to $4.85 bln. During the quarter, Global Services opened its first parts distribution center in India and received a follow-on contract option to provide sustainment for the C-17 Globemaster III.