Categories AlphaGraphs, Earnings, Industrials

In a shocker, Boeing delivers a loss in Q2

Boeing (NYSE: BA) said its revenues for the second quarter tumbled 35% to $15.75 billion, hurt by the recent incidents relating to its Max 737. The top line was far below the analysts’ estimate of $18.55 billion.        

Meanwhile, the company said it swung to a loss of $5.82 per share during the quarter, even as analysts were still expecting a profit. The bottom-line was hurt by a previously-announced charge of $4.9 billion related to the 737 Max airplane grounding and associated delivery delays.

boeing delivered only 90 commercial aircraft in q2

During the quarter, the Chicago-based firm delivered only 90 commercial aircraft, compared to 194 a year ago.

Ever since last month’s deadly crash, airline carriers have been cutting orders for the aircraft that was touted as the most advanced model ever built by Boeing. Boeing continues to work with civil aviation authorities to ensure the 737 Max’s safe return to service.

Revenue from commercial airplanes fell 66% during the quarter. This segment, which accounted for 51% of Boeing’s total revenues at the end of the first quarter, shrunk to 30% at the end of Q2.

boeing surprised wall street by reporting a loss, even as the street was expecting profits

No Outlook

The aircraft manufacturer refrained from giving a financial forecast, citing “uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet.”

READ: Electric airplanes: The market, the challenges and the key players

Separately, Boeing has been facing aggressive international competitors who are intent on increasing their market share, such as Airbus and others from Russia, China and Japan.

The commercial aircraft market is predominantly driven by long-term trends in airline passenger and cargo traffic, and market conditions have a significant impact on the demand for commercial aircraft.

Boeing shares were down 0.55% immediately following the announcement. The stock is currently down 15% from the 52-week high it achieved in March.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

Johnson & Johnson to report Q2 earnings on July 16. Here’s what to expect

Johnson & Johnson's (NYSE: JNJ) business strategy for fiscal 2025 is focused on reducing the impact of patent expirations on its revenue. Anticipating sales to benefit from growth initiatives, including

What to expect when United Airlines (UAL) reports its Q2 2025 earnings results

Shares of United Airlines Holdings, Inc. (NASDAQ: UAL) stayed green on Tuesday. The stock has gained 44% over the past three months. The airline company is scheduled to report its

Earnings Preview: Fastenal Company likely to report higher Q2 sales and profit

Fastenal Company (NASDAQ: FAST), a leading provider of industrial and construction supplies, is set to publish its second-quarter results next week. The company is among the hardest hit by the

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top