Boeing Faces a Turbulent Quarter: Strikes, Layoffs, and Massive Losses Challenge New CEO

Recently, Boeing shared preliminary third-quarter revenue and net loss figures that are worse than analysts had expected. Analysts are anticipating the company will continue to burn through billions of dollars due to safety and production challenges, along with the ongoing machinists’ strike that has lasted over a month.

Analysts expect Boeing’s revenue to rise slightly year-over-year to $18.22 billion. However, they predict a net loss of $5.08 billion, which is more than triple last year’s figure, based on consensus estimates from Visible Alpha.

In recent days, Boeing announced plans to lay off about 10% of its workforce, raise up to $25 billion through debt and stock sales, and secure a $10 billion credit line from major banks.

On the same day it announced layoffs, Boeing also released preliminary results for the third quarter, with expected revenue of $17.8 billion, falling short of analysts’ forecasts. The anticipated loss per share of $9.97 exceeds previous estimates, reflecting the impact of "work stoppage and charges in the commercial airplanes and defense segments."

The ongoing strike has already taken a substantial toll on Boeing’s operations, with Jefferies analysts estimating costs of around $1.3 billion per month.

Wednesday’s earnings report will also mark Kelly Ortberg’s debut as CEO after he took over from Dave Calhoun in August, shortly after the company’s second-quarter results. In last week’s announcement about layoffs and delays in future production plans, Ortberg described Boeing’s situation as “difficult,” adding that “it is hard to overstate the challenges we face together.”

Boeing shares edged lower on Friday afternoon, closing at $155, and are down roughly 40% this year.

Now Boring's price is trade at 159.49, if earnings is weak, it may drop to 143.56 and 113.02 is the strong resistance level