Boeing stock surged over 7% on Tuesday, driven by investor optimism regarding the company's turnaround plan and the ramp-up of 737 Max deliveries. Despite reporting a deeper-than-expected loss in the fourth quarter, CEO Dave Calhoun emphasized the company's progress in addressing challenges and returning to positive operating cash flows.
Boeing stock experienced a surge of over 7% on Tuesday, ultimately settling around a 4% gain by the afternoon. This positive performance came despite the company reporting a deeper-than-expected loss in the fourth quarter, attributed to setbacks in defense contracts and the impact of last year's machinists' strike. CEO Dave Calhoun emphasized the company's progress in its turnaround plan , highlighting the ramp-up of 737 Max deliveries, which are now ahead of schedule.
Boeing shares climbed to their highest level since August 2022, indicating investor optimism about the company's future prospects.Boeing's fourth-quarter results revealed a net loss of $3.86 billion, largely due to challenges in the defense sector and the production disruptions caused by the two-month strike. The company also incurred additional costs related to layoffs announced in the previous year. Adjusted earnings per share fell short of market expectations by $2.67, reaching a negative $5.90. While revenue dipped 31% year-over-year to $15.24 billion, it surpassed Wall Street's projections by $60 million. Management had previously indicated a $1.1 billion charge to the commercial airplane segment and a $1.7 billion charge to the defense segment.CEO Calhoun expressed confidence in Boeing's ability to overcome these hurdles and restore its financial performance. He stated that the company had conducted a thorough review of its fixed-price defense contracts and addressed the underlying issues. The focus now lies on streamlining operations and returning to positive operating cash flows, a goal Calhoun anticipates achieving shortly. He also noted that Boeing is exceeding its internal targets for 737 Max production, currently delivering 38 planes per month, a rate that surpasses the limit imposed by the Federal Aviation Administration after a door blowout incident in 2019. The commercial airplane division delivered a total of 57 planes during the quarter and reported a robust backlog of over 5,500 orders, valued at $521 billion
BOEING STOCK EARNINGS DEFENSE CONTRACTS 737 MAX TURNAROUND PLAN
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