The Smart Marty Sky Dispatch
Boeing Expected to Report Third-Quarter Loss
Analysts forecast another quarterly loss despite recent aircraft certifications and increased deliveries.
Boeing is expected to report a third-quarter loss Tuesday despite recent certification milestones and higher aircraft deliveries. According to Reuters, Wall Street analysts forecast a loss of 21 cents per share, or approximately $153 million, based on LSEG data. That would represent a substantial improvement from the nearly $6 billion loss the company reported during the same quarter last year.
Production Challenges
Boeing said it delivered 161 commercial aircraft during the third quarter, including 124 737s and 22 787 Dreamliners. The manufacturer continues working to stabilize 737 production at 47 aircraft per month, although the increase has taken longer than executives anticipated. Boeing has also encountered difficulties increasing 787 production from eight to 10 aircraft monthly.
The company has secured several major milestones in recent months. Last week, the FAA certified the 737 MAX 10, clearing the final variant of the MAX family for deliveries following years of delays. Boeing also secured a multibillion-dollar contract in September to develop the U.S. Navy’s next-generation F/A-XX fighter aircraft.
Cash Flow Outlook
Despite those developments, analysts remain focused on Boeing’s cash flow and production performance. Although aircraft deliveries remain a major factor in the company’s financial outlook, continued spending on 777-9 certification and new defense manufacturing facilities is putting pressure on cash generation. Analysts anticipate approximately $330.5 million in third-quarter free cash flow and $2.3 billion for the full year, according to Reuters.
Boeing’s shares were down approximately 17% year to date as of Monday’s market open. The company is scheduled to release results Tuesday, Oct. 27, followed by an earnings call at 10:30 a.m. Eastern featuring CEO Kelly Ortberg and Chief Financial Officer Jay Malave.