Boeing shares fall after disappointing earnings report

In October 2024, Boeing Inc experienced a decline in share prices following a disappointing third-quarter earnings report. Reporting $17.85 billion in revenue, the company fell short of analysts' expectations of $17.93 billion, marking a year-over-year decrease of 1%. The adjusted loss per share was reported at $10.44, again missing expectations and showing a significant increase in operational loss from the previous year. Contributing factors included a recent work stoppage by union machinists and various charges impacting both commercial and defense sectors. Boeing's Chief Financial Officer indicated that cash burn would extend into 2025, though they anticipate improved free cash flow in the upcoming year. The company's leadership recognized ongoing challenges, attributing them to performance issues, high debt levels, and cultural problems within the organization. CEO Kelly Ortberg emphasized the necessity for stabilization and a shift towards focusing on fewer key projects. On the labor front, a substantial strike involving over 30,000 machinists began in mid-September, significantly impacting production, particularly of the 737 MAX. In a bid to resolve the strike, union members were set to vote on a new contract proposal featuring a 35% wage increase over four years and a $7,000 ratification bonus. The approval of this proposal was expected to end the ongoing strike, which had been costing the company an estimated $100 million daily. The voting results were anticipated to conclude by 8 p.m. ET, requiring a simple majority for approval. The outcome could determine the immediate future of Boeing's operations and financial stability.