Boeing Pauses 2025 Forecast Amid 737 Max Safety Review, Reports Smaller Q4 Loss
Boeing's Q4 earnings surpass expectations with reduced losses, but the company halts 2025 outlook due to ongoing safety evaluations following a recent 737 Max 9 incident.
Highlights
- Boeing's stock climbed over 3% early Wednesday after reporting a narrower fourth-quarter loss than anticipated for 2023.
- The company has paused its 2024 financial guidance amid safety concerns related to a mid-flight event involving a Boeing 737 Max 9 earlier this month.
- CEO Dave Calhoun emphasized a renewed commitment to enhancing quality control across all operations.
Boeing (BA) shares gained more than 3% in early trading on Wednesday following the announcement of a smaller-than-expected loss for the fourth quarter, despite suspending its forward outlook due to safety issues.
For Q4, Boeing posted revenues of $22.02 billion, exceeding analyst predictions. The net loss narrowed to $30 million compared to a $663 million loss during the same quarter last year. Earnings per share improved significantly, with a loss of 47 cents versus a $1.75 loss per share in the previous year.
In response to a mid-flight incident involving a 737 Max 9 earlier this month, Boeing has suspended its 2024 guidance as it continues to address safety concerns. The company confirmed ongoing transparent collaboration with the Federal Aviation Administration (FAA) throughout the investigation.
Boeing also outlined production plans, capping 737 MAX manufacturing at 38 aircraft per month pending FAA quality inspections. Production of the 787 Dreamliner will continue at five units per month, aiming to double to ten units monthly.
CEO Dave Calhoun conveyed a strong focus on quality improvements in a message to employees: “Our priority is to concentrate on each aircraft while fully supporting our customers, adhering to regulatory guidance, and upholding the highest standards of safety and quality.”
As of 10:20 a.m. ET Wednesday, Boeing shares traded 3.3% higher at $207.01, although the stock has declined over 17% in the past month.
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