Boeing says its loss widened sharply in Q3: should you sell?

by

Boeing Co (NYSE: BA) is keeping in the green this morning even after the multinational said its loss widened sharply in the fiscal third quarter. Its revenue also missed Street expectations by some $2.0 billion.

Expert shares her outlook on the Boeing stock

Boeing attributed the weak quarterly performance to the fixed-price defence development programmes – that Hightower’s Stephanie Link is not much concerned about.

I think the absolute highlight is free cash flow. That’s what this stock trades on. So, for it to be double the expectations, I think that’s a very positive surprise.

Boeing had $2.90 billion in free cash flow this quarter. Link remains bullish on the Boeing stock also for “commercial” that’s keeping resilient. On CNBC’s “Squawk Box”, she said:

We know that demand for new aircraft is very strong. In Q3 alone, net new OEM orders for the industry were 600. So, if you own Boeing for the aerospace business, I feel pretty good about the demand.

Investors looking to buy Boeing stock should also be uplifted knowing the Wall Street has a consensus “overweight” rating on it. The average price target is $202 – up roughly 35% from here.

Key takeaways from Boeing’s Q3 financial update

  • Lost $3.308 billion versus the year-ago $132 million only
  • Per-share loss climbed significantly from 19 cents to $5.49
  • Excluding FAS/CAS service cost adjustment, core loss was $6.18 a share
  • Revenue jumped 4.5% to $15.95 billion as per the earnings press release
  • Consensus was 13 cents of core loss on $17.91 billion revenue
  • Delivered 112 commercial aircraft up from 85 last year

Boeing ended the quarter with $381 billion worth of backlog, including over 4,300 commercial aeroplanes. Also on Wednesday, Alaska Airlines ordered 52 of Boeing’s 737 MAX jetliners.

The post Boeing says its loss widened sharply in Q3: should you sell? appeared first on Invezz.

Related Posts