Business · Companies · 5 hrs ago
Boeing’s quarterly cash flow is the key test for investors
Boeing is due to report third-quarter results on Tuesday before the market opens.
Analysts tracked by LSEG expect a loss of 21 cents per share.
Investors are focused on free cash flow, the money left after the company’s operating and investment costs.
Boeing delivered 363 737 MAX jets in the first nine months, but aircraft production ties up cash in parts and labor until planes are completed and handed over.
Analysts expect $330.5 million in quarterly free cash flow, while net debt is expected to be about $25.4 billion, down from $30.4 billion a year earlier.
Production targets and major projects could affect cash generation: Boeing is aiming to make 47 737s a month and raise 787 production from eight to 10 a month, while also paying for 777-9 certification and new defense facilities.
The results will show whether deliveries are turning into cash and how quickly Boeing may be able to reduce its debt.
Boeing’s third-quarter free cash flow is a key focus for investors ahead of its earnings report on Tuesday.
Analysts tracked by LSEG expect the company to generate $330.5 million in free cash flow for the quarter.
Boeing has delivered 363 737 MAX jets in the first nine months, but deliveries do not necessarily translate into cash immediately.
Analysts expect a 21-cent-per-share loss and net debt of about $25.4 billion.
Production targets and spending on 777-9 certification and new defense facilities could affect cash generation.
- Who
- Boeing and investors awaiting its quarterly results.
- What
- Boeing is due to report its third-quarter results, with free cash flow a central focus.
- When
- Tuesday, before market hours, according to Yahoo Finance.
- Where
- Not stated.
- Why
- Investors are watching whether Boeing can generate cash and reduce its net debt despite production spending and other costs.
This story does not have two clearly opposing sides.
Boeing delivered 363 737 MAX jets.
Boeing is scheduled to report its third-quarter results before market hours.
- Expected quarterly free cash flow
- $330.5 million
- Expected loss per share
- 21 cents
- 737 MAX deliveries
- 363 in the first nine months
- Expected net debt
- About $25.4 billion
- 737 production target
- 47 jets a month
- 787 production goal
- Increase from eight to 10 jets a month