Boeing Co. (NYSE:BA) reported an EPS of -$10.44 for Q3 2024, missing estimates slightly but exceeding revenue expectations with $17.84 billion.
The company’s operating losses surged to $5.76 billion, significantly impacted by a machinists’ strike and quality control issues.
Despite a 36% decline in stock price and challenging financial ratios, Boeing’s leadership is focused on culture change and business stabilization.
Boeing Co. (NYSE:BA) is a leading aerospace company known for manufacturing commercial jetliners and defense, space, and security systems. Despite its prominent position in the industry, Boeing faces significant financial challenges. The company reported an earnings per share (EPS) of -$10.44 for the third quarter of 2024, slightly missing the estimated EPS of -$10.35. However, Boeing’s revenue of $17.84 billion exceeded expectations, surpassing the estimated $17.81 billion.
Boeing’s financial struggles are evident in its operating losses, which have surged from $808 million to $5.76 billion year-on-year in the third quarter. This increase is largely due to a machinists’ strike in the Seattle region, which contributed to a $4 billion operating loss in the commercial aircraft division. The strike, affecting the final two weeks of the quarter, has been a significant factor in Boeing’s financial performance, as highlighted by the company’s recent earnings report.
The company’s margins have also suffered, dropping from -4.5% to -32.3%. This decline reflects the impact of quality control issues and operational disruptions. Despite these challenges, Boeing’s leadership remains optimistic. CEO Kelly Ortberg, who took over in August, is focused on restoring Boeing’s iconic status by emphasizing culture change, business stabilization, and improved program execution.
Boeing’s stock has declined by 36% since the beginning of the year, reflecting investor concerns over the company’s financial health. The company’s financial ratios, such as a negative P/E ratio of -28.64 and a debt-to-equity ratio of -3.22, indicate significant financial difficulties. Additionally, the enterprise value to operating cash flow ratio of -37.49 highlights potential issues with cash flow generation, as reported by various financial analysts.
Despite these challenges, Boeing’s revenue saw a slight decline of 1% to $17.84 billion, and the company delivered 291 aircraft in the first nine months of the year, compared to 371 in the same period in 2023. The company’s leadership remains committed to overcoming these obstacles and laying the foundation for Boeing’s future as an aerospace leader.
