KEY TAKEAWAYS
- Boeing shares are falling in premarket trading after the plane maker projected a much wider-than-expected fourth-quarter loss.
- The plane maker attributed the large loss to the nearly two-month strike that crippled production as well as charges around its defense segment and staff cuts.
- Boeing said it anticipates reporting a fourth-quarter loss of $5.46 per share—far larger than the $1.40-per-share Visible Alpha consensus— when it issues its results on Tuesday.
Boeing (BA) shares are falling in premarket trading after the plane maker projected a much wider-than-estimated fourth-quarter loss following a nearly two-month strike that crippled production, as well as charges around its defense segment and staff cuts.
In preliminary results Thursday, Boeing said it anticipates recording a fourth-quarter loss of $5.46 per share—far larger than the $1.40-per-share Visible Alpha consensus—when it issues its results on Tuesday. It also projects revenue of $15.2 billion, less than analysts’ estimate of $16.3 billion.
“Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet,” said Boeing Chief Executive Officer (CEO) Kelly Ortberg, who took the reins at the embattled company in August.
Shares of Boeing, which said it had $26.3 billion in “cash and investments in marketable securities” at the end of the fourth quarter, are down roughly 1.5% in premarket trading. They have fallen more than 15% over the past 12 months through Thursday.
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