Benjamin Hughes

April 24, 2024 - 07:00 am

Boeing's Quarterly Report Anticipated Before Wednesday's Market Open

Before the commencement of trading on Wednesday, Boeing is set to unveil its quarterly results. Analysts surveyed by LSEG are forecasting a loss of $1.76 per share and revenue of $16.23 billion for the period.

Earnings Conference Call Scheduled

Executives will host an earnings conference call at 10:30 a.m. ET to discuss the financial results and provide insights into the company's performance.

Focus on Fallout from Midair Incident

Wednesday's quarterly report from Boeing is expected to offer the most comprehensive assessment yet of the consequences stemming from the midair loss of a door plug from a 737 Max 9 aircraft in January. This incident initiated another significant safety challenge for the manufacturer.

Analyst Expectations Amidst Ongoing Challenges

Analysts anticipate that Boeing, known for its 737 aircraft, will announce its seventh consecutive quarterly loss. Additionally, it is expected that the company incurred greater cash burn than initially projected due to the aforementioned incident. This event has intensified federal scrutiny and led to a reduction in production, impacting the global supply of new planes just ahead of the bustling summer travel season.

Estimated Financial Performance

As per estimates from LSEG, analysts anticipate the following figures for Boeing's performance for the quarter ending March 31:

• Loss per share: $1.76 (adjusted)
• Revenue: $16.23 billion

Production Challenges and Regulatory Hurdles

Boeing has faced challenges in ramping up production, particularly concerning its popular 737 Max aircraft. Following the door plug incident on an Alaska Airlines Max 9 aircraft on Jan. 5, the Federal Aviation Administration imposed restrictions on Boeing's production increase. Additionally, the FAA identified multiple instances of noncompliance within Boeing's supply chain.

Uncertainties Surrounding CEO Transition and Future Plans

Questions linger regarding Boeing's outgoing CEO, Dave Calhoun, who announced his intention to step down by year-end. Key queries include the timeline for stabilizing production and scaling up output of the 737 Max and other aircraft models, the appointment of a new CEO, the financial impact of the ongoing crisis, and the progress on finalizing a deal to repurchase fuselage manufacturer Spirit AeroSystems.