Boeing stock was trading at $142.30 as of 11:50 AM EDT.
Following the aircraft manufacturer’s Q3 sales growth report, Boeing stock (NYSE:BA) increased by 1.2% on Wednesday. Revenue increased by 4% from the previous year to $16 billion, falling short by $1.95 billion of the consensus projection. With $2.9 billion in free cash flow, Boeing is on track to complete the year with a positive cash flow.
The corporation reported that losses increased as a result of challenges in its defense sector and that its commercial aviation unit is also struggling with supply-chain issues and regulatory challenges. Compared to a loss of $132 million a year earlier, Boeing recorded a $3.3 billion loss, which included $2.8 billion in expenses related to projects including its military refueling tanker and replacements for Air Force One.
Its $5.49 loss per share was larger than the $0.19 loss per share from the previous year. In addition to the lack of plane jet engines, regulatory restrictions continue to be a major challenge for the industry.
By year’s end, the U.S. Federal Aviation Administration must certify that two of its 737 MAX jets meet safety requirements. In reaction to two deadly crashes of the previous 737 MAX 8, the rules were created. Unless Boeing is granted a delay by Congress, MAX jets that aren’t certified by the end of December will have to undergo a potentially expensive and time-consuming upgrade of their cockpits. Through October 25, Boeing’s shares had dropped 29%, compared to a 20% decrease for the S&P 500 index (SP500).
Earnings Summary Behind Boeing Stock Position
Press release from Boeing (NYSE:BA) in summary indicates are: due to higher commercial volume and losses on fixed-price defense development programs, Q3 Non-GAAP EPS of -$6.18 may not be comparable to the consensus estimate of $0.07. $1.95 billion is lost on revenue of $15.96 billion (+4.5% Y/Y). PM shares are down 3%. Nine aircraft were delivered when the business resumed 787 deliveries. $381 billion worth of backlog, including almost 4,300 commercial aircraft. Operating cash flow of $3.2 billion; free cash flow expected to be positive in 2022.
The Reasons Behind Today’s Drop In Boeing Stock
Featured Image- Megapixl @ Michaelvi
Author Jowi Kwasu 
