Conclusions after the report
Shares of Boeing (BA) fell after a financial report that was worse than market analysts' forecasts amid the pandemic crisis and the suspension of deliveries of the Boeing 787 Dreamliner aircraft.
Boeing (BA) has so far failed to inspire optimism in its investors as the company continues to go through crisis times.
Boeing shares are down 3.5% since the beginning of the year and 1.5% at the close of trading Wednesday.
On Wednesday, Boeing investors were expecting to get a road map from the company's management to understand how the company would recover and overcome the current crisis.
Boeing delivered 85 aircraft in the third quarter, compared with 79 aircraft delivered in the second quarter of 2021. Of the 85 aircraft delivered in the quarter, 66 were 737 MAX jets.
Although Boeing reported Q3 losses and earnings worse than market analysts' forecasts, the numbers are better than last year.
The loss per share was -$0.60 versus the Wall Street forecast of -$0.2. The loss for the quarter was $132 million, compared with a $466 million loss a year earlier. Total revenues rose 8% to $15.28 billion from last year's $14.14 billion, worse than analysts' estimates of $16.3 billion.
Management said Boeing produced 19 737 Max aircraft a month in Q3, up from 16 in July. The company predicts the pace will rise to 31 737 Max units a month in early 2022.
Chinese regulators have yet to approve flights for the Boeing 737 Max, the biggest obstacle to a full return to service in the world's largest market.
"Demand for commercial aircraft continues to gain momentum due to the proliferation of vaccines and the opening of border protocols," Dave Calhoun, CEO of Boeing, said in the report.
The Boeing 787 Dreamliner, a wide-body passenger jet designed for long-haul international flights, is still undergoing quality and manufacturing process control inspections by the U.S. Federal Aviation Administration (FAA). Boeing said that suspending shipments of the 787 Dreamliner would result in $1 billion in excess costs, and that it has cut production to about two planes a month.
In Q3, Boeing wrote off $183 million of that amount for an incremental repayment.
Vertical Research Partners analyst Rob Stallard said Wednesday: "We still have limited certainty as to when the 787 will get FAA approval."