Boeing's Q4 Loss Projections Send Shares Plunging
Boeing (BA) shares are experiencing a decline in premarket trading following the company's announcement of a wider-than-anticipated fourth-quarter loss. Factors contributing to this loss include a crippling two-month strike, defense segment-related charges, and staff reductions.
According to preliminary results released on Thursday, Boeing estimates a fourth-quarter loss of $5.46 per share, significantly exceeding the Visible Alpha consensus of $1.40 per share. Revenue projections also fell short of analysts' estimates, with Boeing reporting $15.2 billion against an expected $16.3 billion.
"Despite these challenges, we have implemented measures to stabilize our operations, including reaching an agreement with IAM-represented teammates and executing a capital raise to bolster our financial position," stated Boeing CEO Kelly Ortberg.
As of the fourth quarter's end, Boeing held $26.3 billion in "cash and investments in marketable securities." Shares have dropped approximately 1.5% in premarket trading, extending their decline over the past year to more than 15%.