Key Takeaways
- Boeing is scheduled to report third-quarter results Wednesday morning as a strike involving thousands of union machinists continues.
- The plane manufacturer has announced layoffs and a stock and debt sale fundraising effort to help compensate for the halted production.
- Boeing recently released preliminary revenue and net loss figures that are worse than analysts expect for the third quarter.
Boeing (BA) reports its results for the third quarter Wednesday morning, with analysts expecting the embattled plane manufacturer to continue burning through billions of dollars amid safety and production issues and an ongoing machinists union strike that began over a month ago.
Analysts expect revenue to rise slightly year-over-year to $18.22 billion, but project a net loss more than triple last year’s at $5.08 billion, according to consensus estimates compiled by Visible Alpha.
In recent days, Boeing said it would be laying off about 10% of its workforce, announced plans to raise up to $25 billion through debt and stock sales, and said it had secured a $10 billion line of credit from big banks.
| Analyst Estimates for Q3 2024 | Q2 2024 | Q3 2023 | |
| Revenue | $18.22 billion | $16.87 billion | $18.10 billion |
| Earnings Per Share (Loss) | ($8.24) | ($2.33) | ($2.70) |
| Net Income (Loss) | ($5.08 billion) | ($1.44 billion) | ($1.64 billion) |
Key Metric: Preliminary Results
The same day it announced the layoffs, Boeing also issued preliminary results for the third quarter. The company expects revenue of $17.8 billion, lower than analysts’ expectations, and a loss per share of $9.97, wider than estimates, as it says results will be impacted by the “work stoppage and charges in the commercial airplanes and defense segments.”
Business Spotlight: Impacts of Ongoing Strike
The strike already has had a substantial impact on Boeing’s operations, which Jefferies analysts estimate is costing the company roughly $1.3 billion per month.
Wednesday’s report will also officially be Kelly Ortberg’s first as CEO, as he took over the top job from Dave Calhoun in August, about a week after Boeing’s second-quarter results. In last week’s announcement of layoffs and delays to Boeing’s future production plans, Ortberg said the plane maker is “in a difficult position, and it is hard to overstate the challenges we face together.”
Boeing shares edged lower Friday afternoon, closing at $155. They’re down about 40% so far this year.
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