Boeing Co BA saw its shares fall by 3.01% in pre-market trading on Thursday following the release of its third-quarter financial results. The aerospace company reported a 1% decline in revenue compared to the previous year.
What Happened: As per Benzinga Pro, Boeing was trading at $152.33 at the time of writing after closing at $157.06 on Wednesday.
The company’s third-quarter revenue was $17.854 billion, which did not meet the street consensus estimate of $17.931 billion. Its adjusted loss per share widened to $10.44 from $3.62 in the same quarter last year, falling short of the consensus estimate of $10.34.
Boeing attributed the results to the ongoing strikes led by the International Association of Machinists and Aerospace Workers (IAM) and previously announced charges on commercial and defense programs.
Why It Matters: The revenue miss comes amid broader challenges for Boeing, including cultural and operational hurdles. CEO Kelly Ortberg has acknowledged these issues and pledged to transform the company. The Q3 results reflect the impact of a work stoppage by the International Association of Machinists and Aerospace Workers and previously announced charges on commercial and defense programs.
Additionally, Boeing is grappling with labor unrest. Machinists rejected a proposed labor deal, extending a strike that has halted much of the company’s Seattle-area production for over five weeks. This strike, Boeing’s first since 2008, adds to the company’s challenges, including a $6 billion quarterly loss and ongoing cash burn. CEO Ortberg has emphasized resolving the labor dispute as a priority.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
