Why Boeing Stock Is Falling Today

Boeing Co BA shares are trading lower Wednesday morning after the company reported worse-than-expected financial results.

What Happened: Boeing reported fourth-quarter revenue of $19.98 billion, which missed average analyst estimates of $20.38 billion, according to Benzinga Pro. Commercial Airplanes revenue increased to $9.2 billion, driven by higher 737 and 787 deliveries. Defense, Space and Security revenue totaled $6.2 billion. Global Services revenue was $4.6 billion.

The planemaker reported a quarterly net loss of $1.75 per share, which missed estimates for positive earnings of 26 cents per share.

Total company backlog at the end of the quarter was $404 billion.

"We had a solid fourth quarter, and 2022 proved to be an important year in our recovery. Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond," said Dave Calhoun, president and CEO of Boeing.

Boeing said the 737 program is stabilizing with a production rate of 31 planes per month. The company plans to ramp production to approximately 50 per month in 2025 and 2026. Additionally, the 787 program continues to operate at a low production rate with plans to ramp production to five per month in late 2023.

Cash and investments in marketable securities increased to $17.2 billion in the fourth quarter, up from $14.3 billion sequentially.

"We are investing in our business, innovating and prioritizing safety, quality and transparency in all that we do. While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength," Calhoun added.

Related Link: Boeing Shares Drop On Missing Q4 Earnings Consensus, 737 Program Is Stabilizing Monthly Production Rate At 31

BA Price Action: Boeing shares are down 2.79% at $206.07 at time of publication, according to Benzinga Pro.

Photo: courtesy of Boeing.