Shares of aerospace and defense titan Boeing (NYSE:BA) Co. saw a premarket rise of 3.1% on Wednesday, following the company's Q3 earnings release. Despite reporting a wider-than-expected loss of $3.26 per share, Boeing's revenue rose by 13.5% to $18.1 billion, surpassing market forecasts. This marks the third consecutive quarter of higher-than-expected revenue for the company.
Boeing's commercial airplanes segment saw revenues increase by 25% to $7.88 billion, and global services revenue rose by 8.6% to $4.81 billion, both outperforming market predictions. The company delivered 105 aircraft in Q3, including 70 in the third quarter alone.
Despite this achievement, Boeing experienced its lowest level of 737 Max deliveries since August 2021 due to defects, leading to a reduction in its full-year delivery target from 400-450 to 375-400. The adjusted free cash flow for the quarter was -$310 million.
CEO Dave Calhoun reassured shareholders of the company's commitment towards recovery efforts, operational performance improvements, and a focus on quality systems and transparency as part of long-term future plans and meeting financial goals set for the year.
In Q3, Boeing's order book expanded by 224 planes, including a $40 billion commitment from Ryanair (LON:0RYA) for 150 737 Max jets and United Airlines' purchase of 50 Dreamliners. Ryanair may potentially order up to 300 Max jets in a possible $40 billion deal with phased deliveries between 2027 and 2033.
The overall order book for Boeing now stands at its highest since December 2019 with 5,172 planes. The company reaffirmed its yearly guidance for free cash flow and expects to produce five 787s per month by year-end.
Despite the challenges, Boeing's shares are potentially marking a third consecutive gain after closing at a ten-month low last week. Net losses have narrowed to $1.64 billion from $3.31 billion in the same period last year. The company continues to progress towards its financial targets for this year and beyond, with a focus on improving operational performance and ensuring supply chain stability.
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