Analyst Note| Burkett Huey, CFA |
Wide-moat-rated Boeing reported improvement in the first quarter, as 737 MAX deliveries resumed and allowed the firm to materially reduce operating losses. Sales decreased 10%, but the firm got materially closer to break-even due to a mix shift toward the 737 MAX at Boeing commercial and a lack of a KC-46a tanker charge at Boeing defense. Net loss per share was comparable to the prior year, $0.92 in 2021 versus $1.11 in 2020, due to higher interest expense and lower income tax benefit. We’re maintaining our $257 per share fair value estimate, as the time value of money was offset by our reduced estimates for 737 MAX deliveries (due to electrical issues) and 787 margins due to lower production.