Analysts at Bank of America believe that Boeing Co (NYSE:BA, ETR:BCO) CEO Kelly Ortberg offers a positive direction for the company's strategy following a disappointing earnings report from the airplane manufacturer.
"It will take time to return Boeing to its former legacy but, with the right focus and culture, we can be an iconic company and aerospace leader once again," Ortberg said.
"We will be focused on fundamentally changing the culture, stabilizing the business and improving program execution, while setting the foundation for the future of Boeing."
Boeing's Q3 2024 results showed a reported loss of $10.44 per share, slightly worse than the $10.31 estimated by Bloomberg, as the company continues to face challenges in its commercial and defense segments.
Free cash flow (FCF) was better than expected at negative $1.96 billion, largely due to lower inventories in its commercial aircraft programs.
Operating margins fell sharply to -32.3%, down from -4.5% in Q3 2023, primarily due to charges in both the commercial and defense sectors.
Ortberg also highlighted changes in four particular areas: a "fundamental culture change" in the company, stabilizing the business, improving execution discipline on new platform commitments and building a new future.
"Boeing is an airplane company and at the right time in the future we need to develop a new airplane," Ortberg added. "But we have a lot of work to do before then.''
Shares of Boeing were down 3.7% in Wednesday morning trades.