Home Stock Boeing CEO on wider-than-expected Q3 loss: ‘I remain an optimist’

Boeing CEO on wider-than-expected Q3 loss: ‘I remain an optimist’


Boeing Co (NYSE: BA) shares fell over 2.0% on Wednesday after the aeroplane manufacturer reported a wider-than-expected loss for its fiscal third quarter on revenue that fell shy of Wall Street estimates.

CEO Dave Calhoun’s remarks on CNBC’s ‘Squawk on the Street’

Despite a wider loss in the recent quarter, CEO Dave Calhoun still has a positive outlook for the future. On CNBC’s “Squawk on the Street”, he said:

I absolutely remain an optimist, especially with respect to next year. It’s important we enter 2022 with a decent trajectory; we’re on it and will get even closer to it in Q4. So, yes, I’m feeling good about where we are and where we’re going next year.

The delay in Boeing’s 787 Dreamliner resulted in a $183 million charge for “abnormal production” in Q3 and is expected to cap at about $1.0 billion, but Calhoun said he saw the “billion-dollar” as an investment.

He, however, refrained from predicting when 787 Dreamliner deliveries are expected to begin.

Q3 financial performance

Boeing said it lost $132 million in Q3 that translates to 19 cents per share – a significant decline from a net loss of $466 million or 79 cents per share in the same quarter last year. Adjusted for one-time items, it reported 60 cents of per-share loss.

The aeroplane manufacturer generated $15.28 billion in revenue that represents an annualised growth of 8.1%. According to FactSet, experts had forecast a sharply lower 20 cents of adjusted per-share loss on a higher $16.37 billion in revenue.

Other notable figures

Other notable figures included $4.46 billion in revenue from commercial aeroplanes, $4.22 billion from global services, and $6.62 billion from defence, space and security, with only global services revenue beating estimates.

The three segments noted a 24% increase, a 14% increase, and a 3% decline in revenue, respectively. Boeing’s free cash flow improved sharply from negative $5.08 billion last year to $507 million in the recent quarter, as per the earnings press release, handily beating Wall Street’s call for negative $1.13 billion.

The post Boeing CEO on wider-than-expected Q3 loss: ‘I remain an optimist’ appeared first on Invezz.

You may also like