Everyone expected Boeing’s Q4 earnings to be bad — they were even worse
Yesterday, Boeing dropped the headlines of its Q4 earnings a little early. Not expected until January 28, Boeing reported preliminary revenue of $15.5 billion, far below Wall Street’s forecast of $16.5 billion. The bottom line didn’t fare much better, with a per-share loss of $5.46, nearly triple the $1.55 analysts had anticipated, according to Barron’s.
A clear sign of just how much pain is already priced into Boeing’s stock, the company’s shares are only 1.6% lower in premarket trading, despite the preannouncement and large losses.
The muted reaction may be because the disappointing results largely stem from a well-publicized seven-week labor strike that ended in November, which halted production, delayed deliveries, and resulted in a new labor agreement raising wages by 38%, contributing to $1.1 billion in charges.
With 2024 now officially another year in the red, Boeing hasn’t turned an annual profit in six years, after the fatal crashes of its bestselling 737 Max in 2018 and 2019 set off years of struggles. The challenges continued last year, starting with a midair door plug failure in January that reignited safety concerns. The company ended up delivering roughly half the number of planes that analysts had expected at the start of 2024, per Barron’s.
A clear sign of just how much pain is already priced into Boeing’s stock, the company’s shares are only 1.6% lower in premarket trading, despite the preannouncement and large losses.
The muted reaction may be because the disappointing results largely stem from a well-publicized seven-week labor strike that ended in November, which halted production, delayed deliveries, and resulted in a new labor agreement raising wages by 38%, contributing to $1.1 billion in charges.
With 2024 now officially another year in the red, Boeing hasn’t turned an annual profit in six years, after the fatal crashes of its bestselling 737 Max in 2018 and 2019 set off years of struggles. The challenges continued last year, starting with a midair door plug failure in January that reignited safety concerns. The company ended up delivering roughly half the number of planes that analysts had expected at the start of 2024, per Barron’s.
