Boeing stock moves lower premarket after Q3 loss widens and revenue misses by almost $2 billion

The Boeing Co. stock
fell 1.5% in premarket trade Wednesday, after the company’s third-quarter loss widened and revenue missed consensus estimates by almost $2 billion. The aerospace giant had a net loss of $3.308 billion, or $5.49 a share, for the quarter, wider than the loss of $132 million, or 19 cents a share, posted in the year-earlier period. The company’s core loss per share, which excludes the FAS/CAS service cost adjustment, came to $6.18, while the FactSet consensus was for EPS of 13 cents. The FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments, the company said in its earnings release. Revenue rose to $15.956 billion from $15.278 billion a year ago, while the FactSet consensus was for revenue of $17.911 billion. The company ended the quarter with a backlog of $381 billion, including more than 4,300 commercial airplanes. “We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022,” Chief Executive Dave Calhoun said in a statement. “At the same time, revenue and earnings were significantly impacted by losses on our fixed-price defense development programs. We’re squarely focused on maturing these programs, mitigating risks and delivering for our customers and their important missions.” Shares have fallen 27% in the year to date, while the Dow Jones Industrial Average
has fallen 12%.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *