NYSE$BA

Boeing · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Boeing's financial results were significantly impacted by COVID-19 and the 737 MAX grounding.

Boeing reported a second-quarter revenue of $11.8 billion, a GAAP loss per share of ($4.20), and a core loss per share (non-GAAP) of ($4.79). The results primarily reflect the impacts of COVID-19 and the 737 MAX grounding. Boeing recorded an operating cash flow of ($5.3) billion.

  • Revenue was $11.8 billion.
  • GAAP loss per share was ($4.20).
  • Core (non-GAAP) loss per share was ($4.79).
  • Operating cash flow was ($5.3) billion.

Headline financials

Total Revenue

$11.8B

Previous: $15.8B-25.0%
EPS (adj)

-$4.79

Previous: $2.92-264.0%
Commercial backlog

$326B

No prior period
Defense backlog

$64B

No prior period
Services backlog

$18.2B

No prior period
Commercial deliveries

20

Previous: 90-77.8%
Capital Expenditures

-$776M

Previous: -$922M+15.8%
Free Cash Flow

-$3.15B

Previous: -$3.86B+18.4%
Net Income

-$2.38B

Previous: -$2.94B+19.2%
Operating Income

-$2.96B

Previous: -$3.38B+12.3%
Gross Profit

-$1.17B

Previous: -$2.06B+43.1%
Cash & Equivalents

$20B

Previous: $9.17B+118.1%
Total Assets

$163B

Previous: $126B+29.0%
Stock-Based Comp

$60M

Previous: $57M+5.3%

Revenue & EPS history

Boeing · Revenue · Quarterly

$11.8B

Q2 2020-25%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Boeing · $11.7B total across 3 segments · Q2 2020

  • Defense, Space & Security
    $6.59B
  • Global Services
    $3.49B
  • Commercial Airplanes
    $1.63B

Forward guidance

Boeing is taking actions to align to the sharp reduction in commercial market demand due to COVID-19, including adjusting commercial airplane production rates and reducing employment levels.

Tailwinds

  • Restarted production operations across key sites.
  • Resumed early stages of production on the 737 program with a focus on safety, quality and operational excellence.
  • Made steady progress toward the safe return to service of the 737, including completion of FAA certification flight tests.
  • Received an award for three additional MQ-25 unmanned aerial refueling aircraft for the U.S. Navy.
  • Captured an order for four 767-300 freighter conversions for DHL.

Headwinds

  • Further adjusting commercial airplane production rates.
  • Reducing employment levels.
  • COVID-19 pandemic has significantly impacted air travel and reduced near-term demand.
  • 787 production rate will be reduced to 6 per month in 2021.
  • The 777/777X combined production rate will be gradually reduced to 2 per month in 2021, with 777X first delivery targeted for 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.4%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+2.6%

Avg return

30 days after

51%

37 / 73 earnings

Positive

+13.4%

Q2 2017

Best reaction

-7.8%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.9%+5.6%+0.0%
Q4 2025-1.7%-5.9%-7.7%
Q3 2025-4.4%-8.4%-15.4%
Q2 2025-4.4%-6.1%-0.1%
Q1 2025+6.0%+12.2%+24.5%
Q4 2024+1.5%+0.8%-0.8%
Q3 2024-2.9%-5.7%-6.6%
Q2 2024-4.6%-10.6%-7.0%
Q1 2024-1.4%+2.5%+3.2%
Q4 2023+4.7%+3.1%-0.2%
Q3 2023-1.8%-0.0%+20.6%
Q2 2023+9.2%+11.5%+4.3%
Q1 2023+1.9%+0.8%+0.7%
Q4 2022+0.4%-1.1%-6.5%
Q3 2022-4.7%-2.8%+21.6%
Q2 2022+2.0%+8.4%+5.5%
Q1 2022-7.7%-11.0%-20.8%
Q4 2021-7.0%-1.9%-1.3%
Q3 2021-0.9%+2.3%-5.1%
Q2 2021+4.2%+1.4%-0.2%
Q1 2021-2.7%-3.0%+1.9%
Q4 2020-2.4%-3.1%+4.9%
Q3 2020-4.5%-4.3%+39.5%
Q2 2020-5.2%-5.0%+2.9%
Q1 2020+7.4%+0.1%+11.1%
Q4 2019+2.1%-0.2%-13.1%
Q3 2019+2.2%+1.2%+10.2%
Q2 2019-6.7%-8.8%-4.6%
Q1 2019+2.3%+1.3%-5.1%
Q4 2018+5.7%+8.8%+20.7%
Q3 2018+3.9%-4.1%-10.8%
Q2 2018+0.3%-2.0%-2.5%
Q1 2018+4.2%+1.4%+9.4%
Q4 2017+5.7%-2.6%+2.1%
Q3 2017-2.5%-2.5%-0.0%
Q2 2017+13.4%+14.1%+11.0%
Q1 2017-0.2%-0.6%+1.7%
Q4 2016+5.3%+3.1%+10.5%
Q3 2016+3.1%+2.5%+7.9%
Q2 2016-1.4%-1.2%-1.9%
Q1 2016+1.2%
Q4 2015-7.8%
Q3 2015+5.3%
Q2 2015+0.8%
Q1 2015-2.3%
Q4 2014+11.5%
Q3 2014-4.0%
Q2 2014-4.1%
Q1 2014+1.8%
Q4 2013-7.7%
Q3 2013+5.3%
Q2 2013-1.0%
Q1 2013+4.0%
Q4 2012+0.3%
Q4 2011-1.8%
Q3 2012-1.8%
Q2 2012+4.0%
Q1 2012+1.1%
Q3 2011+5.9%
Q2 2011+0.7%
Q1 2011+0.3%
Q4 2010-0.1%
Q3 2010+3.5%
Q1 2009-2.0%
Q2 2010-2.0%
Q1 2010-0.7%
Q4 2007+2.3%
Q4 2009+2.3%
Q3 2009-1.6%
Q3 2008-1.6%
Q2 2009-2.5%
Q2 2008-2.5%
Q4 2008-2.5%

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