Boeing reported stronger than expected earnings Wednesday, but the report was marred by the jet maker’s recent negative headlines as the firm’s CEO surprisingly said “now is not the time” to focus on Boeing’s financial outlook amid the turbulence.
Boeing CEO Dave Calhoun has navigated a trying month for his firm.
Boeing generated $22 billion of sales during the fourth quarter, easily beating consensus analyst estimates of $21.2 billion compiled by FactSet, while its $0.47 loss per share also beat forecasts of $0.78.
But as observed by Bernstein analyst Douglas Harned in a Monday preview note to clients, this quarter was “unusual” and “nothing” in the typically-tracked earnings metrics are likely to be “useful” for Boeing.
As such, Boeing declined to provide guidance for 2024 sales as it typically does in its first earnings call of the year.
Boeing CEO Dave Calhoun explained that “now is not the time” for forward-looking financial statements as the company must “focus…on doing everything possible” to satisfy customers and regulators alike amid controversy over the safety of the company’s commercial planes, according to a memo sent to employees obtained by Bloomberg.
20%. That’s how far shares of Boeing have fallen since Jan. 5, when a Boeing 737 MAX 9 jet operated by Alaska Airlines malfunctioned. That makes Boeing the second-worst performing stock listed on the S&P 500 during the timeframe, according to FactSet. Shares of Boeing rival Airbus are up 7% in the meantime.
Federal regulators ordered the grounding of all 737 MAX 9 jets shortly after the Jan. 5 incident during which part of a plane door blew open, but cleared the jets for takeoff last week, while limiting Boeing’s production capacity for the planes. Boeing and Airbus enjoy what amounts to a duopoly in the commercial jet sector and remain in close competition, each with market capitalizations between $120 billion and $130 billion. Boeing delivered $55.8 billion in revenue and 371 commercial aircraft over the first nine months of 2023, while Airbus raked in $46 billion of sales and 488 commercial jets. Boeing generates about 40% of revenue from commercial aircraft sales and about a third of sales from defense contracts.