The latest financial results from aerospace giant Boeing reveal a company still grappling with significant operational headwinds. Third-quarter figures, released recently, show losses per share that dramatically exceeded market forecasts, underscoring the depth of the ongoing challenges.
Earnings Miss Highlights Financial Strain
A closer look at the Q3 financial performance paints a stark picture. The company reported a substantial loss, with the key metric of loss per share coming in far worse than analysts had projected.
- Reported loss per share: -$7.47
- Consensus analyst estimate: -$3.68
- Total revenue: $23.27 billion (a 30.4% increase)
Despite the notable year-over-year revenue growth, the reported loss was more than double what market experts had anticipated. This indicates that rising costs related to stabilizing production lines and enhancing quality assurance measures continue to heavily impact the bottom line, keeping the company far from sustainable profitability.
Air Force One Program Faces Major Setback
In a separate development that compounds Boeing’s difficulties, a high-profile defense contract has encountered another serious delay. The delivery timeline for the two new VC-25B aircraft, which will serve as the next generation of Air Force One, has been pushed back significantly.
Should investors sell immediately? Or is it worth buying Boeing?
The revised schedule now points to a mid-2028 delivery, a delay of over three years from the original December 2024 target. This postponement not only strains the relationship with a key defense client but also serves as a clear indicator of the persistent supply chain and production issues within Boeing’s defense division.
Institutional Investors Show Contrarian Interest
Interestingly, amid this stream of negative operational news, Boeing’s stock has shown resilience, currently trading around €174 and holding above critical technical support levels. Market activity suggests a divergence in sentiment between short-term operational concerns and longer-term valuation perspectives.
Data on institutional holdings reveals that certain asset managers are using the period of depressed valuations to build positions. For instance, Nilsine Partners LLC increased its stake by approximately 100% during the third quarter. This activity implies that some professional investors see potential in a long-term recovery narrative for the aerospace manufacturer, even as the share price contends with technical resistance near its 50-day moving average.
This measured interest from institutional buyers signals that a segment of the market is betting on a medium-term turnaround. The success of this wager, however, remains entirely contingent on Boeing’s ability to effectively resolve its production challenges and meaningfully reduce its financial losses.
Ad
Boeing Stock: Buy or Sell?! New Boeing Analysis from December 16 delivers the answer:
The latest Boeing figures speak for themselves: Urgent action needed for Boeing investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 16.
Boeing: Buy or sell? Read more here...
