Boeing is scheduled to report its third-quarter earnings on October 25, 2023. Analysts are expecting a loss per share of $3.18, which would be the company’s fourth consecutive quarterly loss.
Boeing has been facing a number of challenges in recent years, including the COVID-19 pandemic, the 737 MAX crisis, and supply chain disruptions. However, the company is starting to see signs of recovery.
In this blog post, we will take a look at Boeing’s recent performance, the challenges it is facing, and the outlook for its earnings.
Boeing’s recent performance
Boeing’s revenue in the second quarter of 2023 was $19.8 billion, up from $15.8 billion in the same quarter of 2022. However, the company reported a loss per share of $0.25, compared to a profit per share of $0.40 in the same quarter of 2022.
The loss was due to a number of factors, including lower 737 MAX deliveries, higher costs, and a charge related to the company’s winding down of its commercial aircraft production in Russia.
Boeing delivered 136 commercial aircraft in the second quarter of 2023, down from 158 in the same quarter of 2022. The lower deliveries were due to supply chain disruptions and the company’s decision to reduce its production of the 737 MAX.
Boeing’s backlog at the end of the second quarter of 2023 was 4,818 commercial aircraft, valued at $440 billion.
Factors that will impact Boeing’s third-quarter earnings
There are a number of factors that are likely to impact Boeing’s third-quarter earnings, including:
- 737 MAX deliveries: Boeing has been steadily ramping up 737 MAX deliveries in recent months. In the second quarter, the company delivered 135 737 MAX aircraft. Analysts are expecting Boeing to deliver around 140 737 MAX aircraft in the third quarter.
- 787 Dreamliner deliveries: Boeing has been facing a number of challenges with its 787 Dreamliner program. In June, the company temporarily suspended deliveries of the 787 Dreamliner due to a new safety issue. Boeing resumed deliveries of the 787 Dreamliner in August, but the company is still working to ramp up production. Analysts are expecting Boeing to deliver around 10 787 Dreamliner aircraft in the third quarter.
- Defense revenue: Boeing’s defense business is expected to generate strong revenue in the third quarter. The company has a number of major defense contracts, including the F-35 Joint Strike Fighter program.
- Costs: Boeing is facing a number of cost pressures, including rising inflation and supply chain disruptions. Analysts are expecting Boeing’s costs to increase in the third quarter.
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Challenges facing Boeing
Boeing is facing a number of challenges, including:
- Supply chain disruptions: Boeing is facing supply chain disruptions due to the COVID-19 pandemic and the war in Ukraine. These disruptions are causing delays in the delivery of aircraft and components.
- 737 MAX deliveries: Boeing is still recovering from the 737 MAX crisis. The company is slowly ramping up production of the aircraft, but it is still not delivering as many 737 MAX aircraft as it did before the crisis.
- Competition from Airbus: Boeing’s main competitor, Airbus, is outperforming Boeing in terms of deliveries. Airbus delivered 516 commercial aircraft in the first half of 2023, compared to 244 for Boeing.
Outlook for Boeing earnings
Analysts are expecting Boeing to report a loss per share of $3.18 in the third quarter of 2023. This would be the company’s fourth consecutive quarterly loss.
The loss is expected to be due to lower 737 MAX deliveries, higher costs, and a charge related to the company’s winding down of its commercial aircraft production in Russia.
However, there are some signs of recovery for Boeing. The company is ramping up production of the 737 MAX, and it is seeing strong demand for its new 777X aircraft.
Boeing is also expected to benefit from the reopening of China’s economy. China is one of Boeing’s largest customers, and the reopening of the economy is expected to lead to increased demand for commercial aircraft.
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Analyst expectations
Analysts are expecting Boeing to report a loss per share of $3.18 in the third quarter. This would be a significant improvement from the loss per share of $6.18 that the company reported in the same quarter last year.
Analysts are also expecting Boeing to generate revenue of $19.8 billion in the third quarter. This would be a slight increase from the revenue of $19.5 billion that the company generated in the same quarter last year.
Boeing’s long-term prospects
Boeing’s long-term prospects are largely dependent on the company’s ability to overcome its current challenges and execute on its long-term strategy.
The company is facing a number of challenges, including the 737 MAX crisis, the COVID-19 pandemic, and supply chain disruptions. However, the company is also taking steps to address these challenges.
For example, Boeing is working to improve its quality control processes and avoid future production problems. The company is also investing heavily in new technologies, such as self-driving aircraft and sustainable fuels.
Boeing’s long-term strategy is to focus on developing and producing next-generation aircraft. The company is also investing in its digital transformation and in new services, such as data analytics and maintenance support.
Is Boeing stock a good investment?
Whether or not Boeing stock is a good investment at current levels depends on your individual investment goals and risk tolerance.
Boeing is a high-risk, high-reward investment. The company faces a number of challenges, but it also has a strong track record of innovation and a bright future ahead of it.
If you are looking for a long-term investment with the potential to generate significant returns, Boeing stock may be a good option for you. However, it is important to do your own research and understand the risks involved before investing in Boeing stock.
Conclusion
Boeing is facing a number of challenges, but there are also some signs of recovery for the company. The Boeing is ramping up production of the 737 MAX, and it is seeing strong demand for its new 777X aircraft. Boeing is also expected to benefit from the reopening of China’s economy.
It is difficult to predict how Boeing’s earnings will perform in the coming quarters. The company is facing a number of challenges, but there are also some signs of recovery. Investors should monitor Boeing’s progress closely and make investment decisions based on their own risk tolerance and investment goals.
Boeing is scheduled to report its third-quarter earnings on October 25, 2023. Analysts are expecting the company to report a loss per share of $3.18, which would be its third consecutive quarterly loss.
However, there are some signs that the company is starting to turn things around. Boeing has been steadily ramping up 737 MAX deliveries, and its defense business is expected to generate strong revenue in the third quarter.
Boeing’s long-term prospects are largely dependent on the company’s ability to overcome its current challenges and execute on its long-term strategy. The company is facing a number of challenges, but it is also taking steps to address these challenges.
Whether or not Boeing stock is a good investment at current levels depends on your individual investment goals and risk tolerance. Boeing is a high-risk, high-reward investment.
Additional insights
Here are some additional insights into Boeing’s earnings:
- Boeing is expected to report a loss per share of $3.18 in the third quarter of 2023.
- The loss is expected to be due to lower 737 MAX deliveries, higher costs, and a charge related to the company’s winding down of its commercial aircraft production in Russia.
- Boeing is ramping up production of the 737 MAX, and it is seeing strong demand for its new 777X aircraft.
- Boeing is also expected to benefit from the reopening of China’s economy.
- It is difficult to predict how Boeing’s earnings will perform in the coming quarters. The company is facing a number of challenges, but there are also some signs of recovery. Investors should monitor Boeing’s progress closely and make investment decisions based on their own risk tolerance and investment goals.
