Boeing (BA.US) shares fell over 3.0% on Wednesday after the plane maker posted an unexpected quarterly loss of $3.3 billion and revenue that fell below analysts’ estimates. Nevertheless the company maintained its forecast of generating cash this year despite difficulties in elevating commercial jet production.
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Adjusted loss per share: $6.18 vs. expected earnings per share of 7 cents.
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Revenue: $15.96 billion vs. $17.76 billion expected.
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Revenue and earnings were significantly impacted by losses on Boeing's fixed-price defense development programs, according to the company's CEO Dave Calhoun. "We're squarely focused on maturing these programs, mitigating risks and delivering for our customers and their important missions," he said, in a statement. "We remain in a challenging environment and have more work ahead to drive stability, improve our performance and ensure we're consistently delivering on our commitments."
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Calhoun also said he is confident the company will get an extension from the U.S. Congress of a key deadline to get the MAX 7 and MAX 10 certified.
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On the upside, the jet maker generated nearly $3 billion in free cash flow in Q3, up from outflows of $507 million a year earlier. "We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022" said Calhoun.
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The company further cut estimates for 737 MAX deliveries this year. It now expects to deliver 375 planes this year, lower than an earlier target of "low 400s.
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Boeing expects supply-chain to remain a problem next calendar year. Company hired an additional 10,000 employees this year and is investing in training and development to improve productivity.
Boeing (BA.US) stock has lost over 68% since 2019, however buyers have become more active in recent months. Recently bulls launched a recovery move, however upward momentum lost steam following the release of disappointing quarterly figures. Price bounced off resistance at $150.30, which coincides with 38.2% Fibonacci retracement of the upward wave launched in June 2022 and 200 SMA (red line). The nearest support to watch is located around $135.75 and is marked with 61.0 retracement. Source: xStation5
