Boeing's Q4 Revenue May Lose $4 Billion, Sending Its Stock Down After-hours

 

Boeing $BA said on Thursday (Jan. 24) that its estimated loss for the fourth quarter was about $4 billion, higher than analysts' expectations. As a result, Boeing's stock went down 1.82% in after-hours trading on Thursday's US market.

 

Boeing said it initially estimated to lose $5.46 per share in the fourth quarter. The company's projected revenue was $15.2 billion, below analysts' expectations. Boeing's significant financial loss was due to the impact of the worker strike and product safety issues.

 

In January 2024, a Boeing airplane's door plug exploded in mid-air, causing a new safety crisis and a crisis of Boeing's confidence.

 

The accident led to a new federal review and a slowdown in new airplane deliveries. Not coincidentally, Boeing machinists have struck for nearly two months since September 2024, pausing production of most of the company's commercial airplanes. Boeing merely resumed production in November after these workers won a new contract.

 

Because of the updated employee contract, the company expected to charge $1.1 billion for the 777X and 767 programs. In addition, it will incur $1.7 billion in pre-tax costs on KC-46A tankers, the delayed 747 aircraft, and the space program.

 

Boeing CEO Kelly Ortberg posted that management has stabilized performance and improved debt during the quarter through an agreement with IAM and successful financing. The company raised more than $20 billion in the quarter to improve liquidity during the crisis. Boeing said it may have consumed $3.5 billion in cash during the quarter.

 

Nonetheless, Boeing's all-important commercial airplane division was projected to have revenues of $4.8 billion and an operating margin of nearly negative 44%.

 

#earnings