Boeing Co BA shares were trading higher in Wednesday's premarket session after the company reported first-quarter earnings results and announced it will reduce its workforce by 10%.
The company reported quarterly losses of $1.70 per share, which missed the analyst consensus estimate of a $1.61 per share loss by 5.59%. This is a 153.8% decrease over earnings of positive $3.16 per share from the same period last year.
Boeing reported quarterly sales of $16.908 billion, which missed the analyst consensus estimate of $17.310 billion by 2.32%. This is a 26.22% decrease over sales of $22.917 billion in the same period last year.
With the coronavirus pandemic reducing airline passenger traffic to a trickle, Boeing said it is seeing significant impact on the demand for new commercial airplanes and services. Airlines are delaying purchases of new jets, slowing delivery schedules and deferring elective maintenance, according to the company.
Boeing said it has begun taking action to lower the number of employees by roughly 10% through a combination of voluntary layoffs, natural turnover and involuntary layoffs as necessary, CEO David Calhoun said in a statement.
"The COVID-19 pandemic is affecting every aspect of our business, including airline customer demand, production continuity and supply chain stability," he said.
"Our primary focus is the health and safety of our people and communities while we take tough but necessary action to navigate this unprecedented health crisis and adapt for a changed marketplace."
Boeing shares were trading up 3.36% at $135.71 in Wednesday's premarket session. The stock has a 52-week high of $391 and a 52-week low of $89.
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