Boeing’s shares surged despite a worse-than-expected loss and $900 million in missed sales.
Despite posting a worse-than-expected loss and revenues that fell $900 million short of expectations, Boeing’s stock price climbed in the face of the mounting pressure on the firm.
Compared to the three years of negative news that the firm has suffered, these current figures are almost excellent enough to be considered a “good” month.
Boeing (BA), a Dow component, saw its shares rise 3% in midday trade on the news. They’re down 22% for the year as of Tuesday’s closing.
“Boeing’s initial operating cash flow was $81 million.”
Boeing’s operating cash flow was $81 million, its first in three years. Boeing has no cash burn for the second straight quarter. The company promises good cash flow all year.
Since the second quarter of 2019, Boeing has faced a cash-burning trend due to the grounding of the 737 Max following two deadly incidents. During that period, Boeing’s operational cash flow was minus $24.7 billion dollars.
It’s not clear when Boeing will resume delivery of its 787 Dreamliner jets, which have been grounded for more than a year due to the FAA.
Costs linked with the suspension of production were $283 million in the third quarter, and they estimate to rise to $2 billion in total.
Boeing recorded a net loss of $160 million for the second quarter, a 72 percent decrease from the same period last year.
Revenue of $16.9 billion was down 2% from last year, although experts had predicted $900 million less.
The quarter’s adjusted loss per share was 37 cents. Refinitiv expected a 14-cent loss per share, lower than last year’s 40-cent profit.