A month has gone by since the last earnings report for Boeing (BA). Shares have lost about 0.4% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Boeing due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Boeing's Q4 Earnings Lag Estimates, Revenues Decrease Y/Y

The Boeing Company incurred an adjusted loss of $5.90 per share in the fourth quarter of 2024, wider than the Zacks Consensus Estimate of a loss of $3.22. The bottom line deteriorated from the year-ago quarter’s reported loss of 47 cents per share. 

Including one-time items, the company reported a GAAP loss of $5.46 per share, wider than the year-ago quarter’s reported loss of 4 cents.

The year-over-year deterioration can be attributed to the adverse impact of the International Association of Machinists and Aerospace Workers (IAM) work stoppage and agreement, charges for certain defense programs and costs associated with workforce reductions announced last year.

For 2024, the company incurred an adjusted loss of $20.38 per share, wider than the Zacks Consensus Estimate of a loss of $17.92. The bottom line deteriorated from the year-ago reported loss of $5.81 per share.

Revenues

Revenues amounted to $15.24 billion, which beat the Zacks Consensus Estimate of $15.19 billion by 0.4%. The top line also decreased 31% from the year-ago quarter’s reported figure of $22.02 billion.

The year-over-year deterioration was due to dismal performance by the Commercial Airplanes as well as Defense, Space & Security business segments.

For 2024, BA’s revenues amounted to $66.52 billion, which lagged the Zacks Consensus Estimate of $66.84 billion. The top line also decreased 14% from the year-ago reported figure of $77.79 billion.

Total Backlog

Backlog at the end of the fourth quarter of 2024 totaled $521.34 billion, up from $510.51 billion recorded at the end of the third quarter.

Segmental Performances

Commercial Airplane: Revenues in this segment declined 55% year over year to $4.76 billion, reflecting the impact of the IAM work stoppage and agreement including lower deliveries. The segment incurred an operating loss of $2.09 billion, indicating a major deterioration from the year-ago quarter’s reported operating profit of $0.04 million. This was due to pre-tax charges of $1.1 billion on the 777X and 767 programs. 

During the quarter under review, Boeing delivered 57 commercial planes. The figure declined 64% year over year.

The backlog for this segment remained healthy, with more than 5,500 airplanes valued at $435 billion.

Boeing Defense, Space & Security (“BDS”): The segment recorded revenues of $5.41 billion, indicating a year-over-year decline of 20%. It incurred an operating loss of $2.26 billion, implying a deterioration from the year-ago quarter’s operating loss of $0.10 billion. This deterioration was due to pre-tax charges of $1.7 billion from the T-7A, KC-46A Tanker, Commercial Crew, VC-25B and MQ-25 programs. 

BDS recorded a backlog of $64 billion, 29% of which comprised orders from international clients.

Global Services: Revenues in this segment improved 6% year over year to $5.12 billion, driven by higher commercial volume and mix. This unit generated an operating income of $998 million, which improved 19% from the prior-year quarter’s level.

Financial Condition

Boeing exited 2024 with cash and cash equivalents of $13.80 billion, and short-term and other investments of $12.48 billion. At the end of 2023, the company had cash and cash equivalents of $12.69 billion, and short-term and other investments worth $3.27 billion.

Long-term debt amounted to $52.59 billion, up from $47.10 billion recorded at the end of 2023.

The company’s operating cash outflow as of Dec. 31, 2024, was $12.08 billion against operating cash inflow of $5.96 billion as of Dec. 31, 2023.

Free cash outflow totaled $14.31 billion at the end of 2024 against free cash inflow of $4.43 billion at the end of 2023.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -104.31% due to these changes.

VGM Scores

Currently, Boeing has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Boeing has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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