Why Is Boeing (BA) Down 0.4% Since Last Earnings Report?

Core Viewpoint - Boeing's recent earnings report indicates significant financial challenges, with losses widening and revenues declining year-over-year, raising concerns about the company's future performance and market position [2][3][4]. Financial Performance - In Q4 2024, Boeing reported an adjusted loss of $5.90 per share, which was worse than the Zacks Consensus Estimate of a loss of $3.22, and a deterioration from the previous year's loss of $0.47 per share [2][3]. - Total revenues for Q4 2024 were $15.24 billion, slightly above the Zacks Consensus Estimate of $15.19 billion, but down 31% from $22.02 billion in the same quarter last year [4]. - For the full year 2024, revenues totaled $66.52 billion, missing the Zacks Consensus Estimate of $66.84 billion and reflecting a 14% decline from $77.79 billion in 2023 [5]. Segment Performance - The Commercial Airplanes segment saw revenues drop 55% year-over-year to $4.76 billion, with an operating loss of $2.09 billion, significantly worse than the previous year's operating profit of $0.04 million [7]. - Boeing delivered 57 commercial planes during the quarter, a 64% decline compared to the previous year, but maintained a backlog of over 5,500 airplanes valued at $435 billion [8]. - The Defense, Space & Security segment recorded revenues of $5.41 billion, down 20% year-over-year, with an operating loss of $2.26 billion, worsening from a $0.10 billion loss in the prior year [9]. - Global Services revenues improved by 6% year-over-year to $5.12 billion, with an operating income of $998 million, up 19% from the previous year [10]. Financial Condition - Boeing ended 2024 with cash and cash equivalents of $13.80 billion and short-term investments of $12.48 billion, compared to $12.69 billion and $3.27 billion at the end of 2023 [11]. - The company reported a long-term debt of $52.59 billion, an increase from $47.10 billion at the end of 2023 [11]. - Operating cash outflow for 2024 was $12.08 billion, compared to an inflow of $5.96 billion in 2023, while free cash outflow totaled $14.31 billion against an inflow of $4.43 billion in the previous year [12]. Market Sentiment - Recent estimates for Boeing have trended downward, with a consensus estimate shift of -104.31% indicating a negative outlook [13]. - The company currently holds a subpar Growth Score of D and a Momentum Score of F, resulting in an overall VGM Score of F, placing it in the bottom 20% for investment strategies [14]. - The outlook suggests a continued downward trend in estimates, with Boeing holding a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15].