Boeing is not expected to swing back to a profit in the second quarter but investors are optimistic the airline manufacturer is delivering on its promised ramp-up in production following manufacturing and supply chain issues.
Improved commercial deliveries in the year to date of 266 aircraft are expected to have boosted the company's 2Q revenue, with its quarterly financial results set to be handed down on Wednesday, July 26, before the opening bell in New York.
The 5% decline in 2Q defence shipments year-over-year is expected to be offset by the 12.4% increase in commercial deliveries.
Recent strong order activity and increased aftermarket services revenue, with all 737 MAX operators having returned to flying as of March 31, are expected to lift Boeing’s cash flow reserve.
However, abnormal costs associated with the production of Boeing's 787 Dreamliner could weigh on its results.
Analysts, on average, expect the company to post a loss per share of $0.99 on revenue of $18.46 billion, according to Zacks Consensus Estimate.
This is a significant decrease in earnings from the year-ago quarter when the company posted adjusted earnings per share of $0.32 on revenue of $16.7 billion.
For the first quarter, the company posted an adjusted loss per share of $0.69 and revenue of $17.9 billion.
Boeing shares traded hands at $213.49 on Thursday afternoon, up 9.2% in the year to date.
Contact the author at emily.jarvie@proactiveinvestors.com
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