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Key Takeaways
- Boeing shares rose in intraday trading Wednesday after the aircraft maker posted a smaller-than-expected first-quarter loss.
- Boeing’s quarter was marred by a number of safety-related incidents that sparked investigations of the company’s manufacturing practices.
- Even with Wednesday’s gains, Boeing shares have lost roughly a third of their value this year.
The Boeing Company’s (BA) stock rose in intraday trading Wednesday after the aircraft manufacturer reported first-quarter results that fell short of revenue estimates, but also included a smaller loss than analysts expected.
Boeing posted $16.57 billion in revenue for the quarter, below the $16.79 billion analysts expected, per estimates compiled by Visible Alpha. However, the company also reported an adjusted net loss of $1.13 per share that was much smaller than the anticipated $1.70-per-share loss.
“Our first quarter results reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality,” outgoing Boeing Chief Executive Officer (CEO) Dave Calhoun said in a statement. “We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future.”
The airplane maker had a rough first quarter, kicked off by a January incident in which a door plug detached from a Boeing plane being flown by Alaska Airlines, leading to the grounding of the 737 Max fleet and a significant slowdown in Boeing’s production so far this year. Earlier this month, the company reported its lowest number of deliveries since 2021.
Following the January incident, the company suspended its 2024 guidance as it became the subject of a number of investigations from regulators and law enforcement amid a number of other incidents involving Boeing planes.
The safety issues and investigations also led to the announcement last month that Calhoun will step down at the end of 2024. The head of Boeing’s Commercial Airplanes division and its independent board chair were also replaced.
Despite Boeing’s issues, several airlines have reported strong earnings in recent quarterly reports as demand for travel has remained strong.
Boeing shares were up 2% to $172.65 at 10:50 a.m. ET Wednesday but have lost about a third of their value this year amid the safety issues and investigations.