Boeing climbs after burning less cash than expected last quarter, despite posting its first annual loss in more than 20 years
- Boeing released fourth-quarter earnings Wednesday, reporting the first annual loss in over 20 years.
- But the company burned through less cash than expected, providing a glimmer of hope in an otherwise dismal report.
- Boeing has struggled to recover financially and reputationally after two crashes of its 737 Max killed 346 people and sent the company into crisis mode.
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After a dismal earnings report, it did not seem like it would be Boeing's morning on the stock market. Then shares jumped as much as 3.83% in pre-market trading.
That's because one part of the earnings report came out better than expected, offering a flicker of hope for investors: Boeing burned through a little less cash than analysts expected at the end of last year.
Boeing posted free cash flow numbers of -$2.67 billion, versus -$3.87 billion the Street expected it to lose. During the same time last year, the company reported $2.45 billion in free cash flow.
Here are the key numbers for the quarter:
Revenue: $17.91 billion, versus the $21.74 billion analyst estimate
Adjusted earnings per share: -$2.33, versus the $1.32 analyst estimate
Free cash flow: -$2.67 billion, versus the -$3.87 billion analyst estimate
That was before the company's 737 Max crisis was fully underway. After two crashes of the 737 Max within the span of five months killed 346 people, Boeing has spent the past year wrestling with its reputation and finances. Boeing in January suspended production of the 737 Max, which has been grounded since the last crash in March 2019.
The crisis cost the company over $18 billion, and evidence of the fallout on Boeing's business was clear Wednesday. The company posted its first annual revenue decline in more than 20 years, and earnings per share dipped into negative territory.
Shares tumbled as much as 2.43% Wednesday after the company announced, before recovering to trade near pre-market session highs as of 8:40 a.m.