Menu

Earnings preview: 737 Max debacle to hurt Boeing Q2 results

By Staff Correspondent |

Boeing (NYSE: BA) is scheduled to report its earnings results for the second quarter of 2019 on Wednesday before the market release. The aircraft maker will take a charge of $4.9 billion related to the 737 Max airplane grounding and associated delivery delays. The charge will hurt revenue and pre-tax earnings for the second quarter by $5.6 billion.

The commercial jet aircraft market and the airline industry remain extremely competitive. Boeing has been facing aggressive international competitors who are intent on increasing their market share, such as Airbus and other entrants from Russia, China and Japan. The commercial aircraft market is predominantly driven by long-term trends in airline passenger and cargo traffic, and market conditions have a significant impact on the demand of commercial aircraft.

What to expect from Boeing Q2 earnings

Boeing continues to seek opportunities to lower the costs of building aircraft, including working with its suppliers to reduce supplier costs, identifying and implementing productivity improvements, and optimizing how to manage inventory. The company’s backlog, which is converted into revenue in future, at March 31, 2019 was $486.85 billion. The company expects about 33% to be converted to revenue through 2020 and about 76% through 2023, with the remainder thereafter.

The credibility of the company has been questioned after the two fatal crashes that resulted in the grounding of the 737 MAX jets across the world. Ever since last month’s deadly crash, airline carriers have been cutting orders for the aircraft that was touted as the most advanced model ever built by Boeing. Boeing continues to work with civil aviation authorities to ensure the 737 Max’s safe return to service.

Boeing’s estimated costs to produce the aircraft in the 737 accounting quantity increased by $1.7 billion in the second quarter, primarily due to higher costs associated with a longer than expected reduction in the production rate. The increased 737 program costs will reduce the margin of the 737 program in the second quarter and in future quarters.

Will Boeing 737 Max takeoff again this year
The Boeing 737Max aircraft
(COURTESY: Boeing)

The company is expected to meet increased funding requirements by issuing commercial paper or term debt in the event of commercial aircraft financing commitments and others including impacts related to the 737 Max grounding. The company believes its ability to access external capital resources should be sufficient to satisfy existing short-term and long-term commitments. As of the end of the first quarter, Boeing had a total debt of $15.81 billion while it had total cash of $7.73 billion.

Analysts expect the company’s earnings to plunge by 46.80% to $1.77 per share and revenue will dip by 21.20% to $19.12 billion for the second quarter. In comparison, during the previous year quarter, Boeing posted a profit of $3.33 per share on revenue of $24.26 billion. The company has surprised investors by beating analysts’ expectations thrice in the past four quarters.

For the first quarter, Boeing reported a 13% decline in earnings due to lower revenue, lower 737 deliveries as well as timing of receipts and expenditures. Revenue slipped 2% year-over-year. During the quarter, Commercial Airplanes delivered 149 airplanes and the production rate for the 787 increased to 14 airplanes per month.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Advertisement

201 responses to “Earnings preview: 737 Max debacle to hurt Boeing Q2 results”

  1. MBA

    […]we came across a cool internet site that you could possibly enjoy. Take a look in the event you want[…]

  2. faculty of pharmacy

    […]that would be the end of this post. Here you will come across some sites that we think you will appreciate, just click the links over[…]

  3. Maillot de football

    […]although web-sites we backlink to below are considerably not connected to ours, we really feel they’re in fact really worth a go by way of, so possess a look[…]

  4. Maillot de football

    […]we like to honor several other web web-sites on the internet, even if they aren’t linked to us, by linking to them. Beneath are some webpages really worth checking out[…]

  5. Fiverr Earn

    […]Wonderful story, reckoned we could combine some unrelated information, nonetheless seriously worth taking a look, whoa did a single study about Mid East has got extra problerms too […]

  6. TLI

    […]please pay a visit to the sites we adhere to, such as this 1, as it represents our picks from the web[…]

  7. fabricante de ropa

    […]although websites we backlink to below are considerably not related to ours, we feel they are truly really worth a go through, so possess a look[…]

  8. fiverrearn.com

    […]very couple of internet websites that occur to be in depth beneath, from our point of view are undoubtedly properly really worth checking out[…]

  9. fue

    […]please go to the web pages we follow, like this one particular, because it represents our picks in the web[…]

  10. Classic Books 500

    […]we like to honor numerous other world-wide-web web sites around the internet, even though they aren’t linked to us, by linking to them. Under are some webpages worth checking out[…]

  11. FiverrEarn

    […]we like to honor several other world wide web web pages on the web, even if they aren’t linked to us, by linking to them. Underneath are some webpages really worth checking out[…]

  12. FiverrEarn

    […]that could be the finish of this report. Here you will find some internet sites that we believe you’ll enjoy, just click the links over[…]

  13. FiverrEarn

    […]although internet websites we backlink to below are considerably not associated to ours, we really feel they’re in fact worth a go by, so possess a look[…]

  14. FiverrEarn

    […]just beneath, are quite a few entirely not associated internet sites to ours, on the other hand, they are certainly worth going over[…]

  15. partners

    […]Wonderful story, reckoned we could combine a couple of unrelated information, nevertheless genuinely worth taking a appear, whoa did one particular study about Mid East has got more problerms too […]

  16. Environmental Policy

    […]although web sites we backlink to beneath are considerably not related to ours, we really feel they may be really worth a go by means of, so possess a look[…]

  17. FiverrEarn

    […]although internet websites we backlink to below are considerably not connected to ours, we feel they’re really really worth a go via, so have a look[…]

  18. FiverrEarn

    […]very handful of sites that happen to be detailed below, from our point of view are undoubtedly properly really worth checking out[…]

  19. FiverrEarn

    […]although internet sites we backlink to beneath are considerably not related to ours, we feel they are basically really worth a go through, so possess a look[…]

  20. FiverrEarn

    […]we like to honor lots of other web web sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[…]

  21. marketing

    […]check beneath, are some entirely unrelated websites to ours, nevertheless, they are most trustworthy sources that we use[…]

  22. FiverrEarn

    […]just beneath, are a lot of totally not related websites to ours, on the other hand, they may be certainly worth going over[…]

  23. cheap sex cams

    […]very couple of internet websites that take place to be comprehensive beneath, from our point of view are undoubtedly properly really worth checking out[…]

  24. live sex cams

    […]that could be the finish of this report. Here you’ll come across some websites that we assume you will value, just click the links over[…]

  25. Expanding symbol

    […]very few internet websites that come about to become detailed beneath, from our point of view are undoubtedly effectively worth checking out[…]

  26. nang delivery

    […]check beneath, are some entirely unrelated web-sites to ours, however, they may be most trustworthy sources that we use[…]

  27. allgame

    […]here are some hyperlinks to web pages that we link to due to the fact we think they may be worth visiting[…]

  28. 918kiss

    […]check beneath, are some entirely unrelated internet websites to ours, nonetheless, they’re most trustworthy sources that we use[…]

  29. Best Korean makeup

    […]very handful of internet websites that happen to be in depth beneath, from our point of view are undoubtedly well worth checking out[…]

  30. pg slot

    […]The information talked about inside the article are a number of the very best readily available […]

  31. dietary supplements

    […]Wonderful story, reckoned we could combine a handful of unrelated information, nevertheless truly really worth taking a look, whoa did a single master about Mid East has got a lot more problerms too […]

  32. megagame

    […]Wonderful story, reckoned we could combine some unrelated data, nonetheless seriously really worth taking a look, whoa did one find out about Mid East has got extra problerms at the same time […]

  33. 17 wsm

    […]always a huge fan of linking to bloggers that I appreciate but do not get a great deal of link really like from[…]

  34. FB URL Shortener

    […]we prefer to honor quite a few other web websites around the internet, even if they aren’t linked to us, by linking to them. Beneath are some webpages worth checking out[…]

  35. masumintl.com

    […]very handful of internet websites that take place to be in depth beneath, from our point of view are undoubtedly very well really worth checking out[…]

  36. MasumINTL.Com

    […]very few internet websites that transpire to be comprehensive beneath, from our point of view are undoubtedly properly worth checking out[…]

  37. registry dog

    […]Wonderful story, reckoned we could combine a couple of unrelated information, nonetheless truly really worth taking a look, whoa did 1 discover about Mid East has got a lot more problerms also […]

  38. atizapán de zaragoza clima

    […]Wonderful story, reckoned we could combine a few unrelated information, nonetheless really worth taking a appear, whoa did 1 learn about Mid East has got more problerms as well […]

  39. Sick

    […]Every as soon as in a even though we pick out blogs that we study. Listed below are the latest sites that we select […]

  40. playnet app

    […]Every the moment in a although we choose blogs that we read. Listed below would be the most recent sites that we choose […]

  41. esports domains

    […]Wonderful story, reckoned we could combine a number of unrelated data, nevertheless definitely really worth taking a look, whoa did one learn about Mid East has got extra problerms also […]

  42. clima en chimalhuacan

    […]although internet sites we backlink to beneath are considerably not associated to ours, we feel they may be basically worth a go by way of, so possess a look[…]

  43. designer dogs

    […]Every as soon as in a when we decide on blogs that we study. Listed below would be the most recent websites that we decide on […]

  44. undetected apex hacks

    […]we like to honor numerous other world wide web web-sites on the internet, even when they aren’t linked to us, by linking to them. Beneath are some webpages worth checking out[…]

  45. 늑대닷컴

    […]although sites we backlink to below are considerably not connected to ours, we feel they may be truly worth a go via, so have a look[…]

  46. nepo hat

    […]very handful of websites that occur to become detailed below, from our point of view are undoubtedly properly worth checking out[…]

  47. crypto news

    […]Every the moment in a although we pick out blogs that we read. Listed below would be the most current web sites that we decide on […]

  48. bjj jiu jitsu magnolia texas

    […]we prefer to honor a lot of other net web-sites around the net, even when they aren’t linked to us, by linking to them. Under are some webpages worth checking out[…]

  49. minnect expert

    […]very handful of internet sites that happen to become comprehensive below, from our point of view are undoubtedly well worth checking out[…]

  50. yorkie poo breeding

    […]check beneath, are some completely unrelated web sites to ours, having said that, they’re most trustworthy sources that we use[…]

  51. grey fluffy french bulldog

    […]although internet sites we backlink to below are considerably not associated to ours, we really feel they may be really really worth a go via, so possess a look[…]

  52. chile candies

    […]check below, are some absolutely unrelated internet sites to ours, nonetheless, they are most trustworthy sources that we use[…]

Top