Boeing (BA) shares are down over 1% in pre-market trading on Wednesday after the company reported a hefty $4.9 billion charge in Q3 tied to its long-delayed 777X wide-body jet. The aircraft remains years behind schedule and is still awaiting regulatory approval. At the same time, stronger jet deliveries helped Boeing generate positive cash flow for the first time in almost two years. Notably, the company generated $1.1 billion in operating cash flow and $0.2 billion in free cash flow during the quarter.
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Boeing’s Q3 Highlights
In the third quarter, Boeing’s revenue rose 30% to $23.3 billion thanks to more airplane deliveries. The revenue also surpassed the $22.29 billion expected by analysts.
Even so, the company reported a GAAP loss per share of $7.14, reflecting the massive charge related to 777X jet delays. Meanwhile, the charge pushed Boeing into a quarterly net loss of $5.3 billion, though that is slightly better than the $6.2 billion loss it reported a year ago.
Moreover, Boeing’s order backlog increased to $636 billion, with more than 5,900 planes waiting to be delivered. In Q3, the company delivered 160 commercial planes, marking its highest quarterly output since 2018.
Boeing Shows Progress
Boeing’s Q3 results indicate that CEO Kelly Ortberg’s turnaround efforts at the struggling aviation giant are making steady progress.
Ortberg acknowledged the setback, saying Boeing is frustrated by the latest 777X delay, but noted that the jet is performing well in testing. He emphasized that the company is focused on finishing development, improving operations, and rebuilding confidence with customers and stakeholders.
Is Boeing a Good Buy Right Now?
According to TipRanks’ consensus, BA stock has a Strong Buy consensus rating based on 13 Buys and one Hold assigned in the last three months. At $258.91, the average Boeing stock price target implies a 16% upside potential.
These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
