The Boeing Company’s shares fell almost 9% on Wednesday after the company reported increased losses and a revenue miss of almost $2 billion in its third-quarter earnings.
For the quarter, the aerospace manufacturer reported a net loss of $3.3 billion, or $5.49 per share, a significant increase from its net loss of $132 million, or $0.19 per share, in the same quarter last year.
The company reported $16 billion in revenue, up 4% from $15.3 billion for the same quarter last year but falling short of the consensus analyst expectation of $17.9 billion by almost $2 billion.
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Further, the company ended the quarter with a total backlog of $381 billion, including more than 4,300 commercial planes.
Boeing ended the quarter with an improved operating cash flow of $3.2 billion, up from $262 million in the year-ago quarter, reflecting higher commercial deliveries, favourable receipt timing, and a tax refund.
The company said its third-quarter performance reflected higher commercial volume and losses on fixed-price defence development programs, driven by higher estimated manufacturing and supply chain costs and technical challenges.
In a statement, Boeing CEO Dave Calhoun said the company continued to make important strides in its turnaround, despite the challenging environment.
“We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022,” he said.
Regarding its losses from its fixed-price defence development programs, Calhoun said the company was squarely focused on maturing these programs, mitigating risks, and delivering for its customers and their important missions.
At the closing bell on Wednesday, Boeing's shares had tumbled 8.7% to $133.9, after popping about 2% to $149.6 per share earlier in the day. The company’s stock is down almost 30% this year.
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