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Investing.com - Boeing has reported a third-quarter core loss per share which was deeper than Wall Street estimates, as the planemaking giant was hit by a multi-billion dollar charge related to the delayed delivery of its 777X jet.
Adjusted per-share core loss for the quarter ending in September came in at $7.47, down from $10.44 a piece a year ago, but deeper than Bloomberg consensus expectations of $4.92.
In a statement, Boeing said the figure was dented by a pre-tax earnings charge of $4.9 billion on the 777X program, which increased the loss per share by $6.45. Charges related to the plane, which has been in the works since 2013, had already surpassed $10 billion prior to Wednesday’s announcement.
"While we are disappointed in the 777X schedule delay, the airplane continues to perform well in flight testing, and we remain focused on the work ahead to complete our development programs and stabilize our operations in order to fully recover our company’s performance and restore trust with all of our stakeholders," said CEO Kelly Ortberg in a statement.
Shares of Boeing slipped by over 3% in early U.S. trading.
Earlier this month, Bloomberg News said delivery of the 777X was being pushed back to early 2027, leading several analysts to project a charge of between $1 billion and $4 billion. Boeing was initially slated to deliver its first 777X in 2026.
Ortberg also previously flagged that a "mountain of work" needs to be done to certify the jet, although he said at the time that no new technical issues had been identified.
Still, Boeing said that production of crucial 737 MAX model had "stabilized" at 38 per month. The Federal Aviation Administration, driven by safety and quality concerns around the jet following a string of incidents in recent years, had capped production of the plane at that level, but eased the limit earlier this month. Boeing now has approval to raise 737 MAX output to 42 a month.
Revenue grew by 30% to $23.27 billion thanks to a host of commercial deliveries, the company noted. Analysts had seen the figure at $22.29 billion.
Adjusted free cash flow, a closely-watched metric of Boeing’s cash position, also stood in positive territory, at $238 million, versus forecasts for negative $884.1 million.
"We think on balance, investors will look favorably on the quarter as the 777X charge is now behind the company," analysts at BofA Securities including Ronald Epstein and Mariana Perez Mora said in a note. "Further we think the better than expected cash flow offsets the 777X charge."