Boeing Slides 10% as CEO Warns 737 MAX Rate Hike 'Didn't Go as Smoothly'
BA is trading near its 52-week low of $168.42 (1.0% above the low) on elevated volume (3.6× avg).
Summary
Boeing shares fell more than 10% in midday trading after management used the investor call to push back on hopes for a quick turnaround. The company posted a $116 million quarterly loss, with weak revenue and high costs in commercial aircraft. CEO Kelly Ortberg said the step up to 47 jets a month on the 737 MAX lines 'didn't go as smoothly' as the prior rate increase, and Boeing doesn't expect to reach that more profitable rate until next year. Wing production for the 737 MAX is lagging fuselage output, which keeps margins under pressure. The stock is trading near its 52-week low, so the market is repricing the pace of the cash recovery rather than the quarter itself.
At the time of this announcement, BA was trading at $170.07 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $134.4B. The 52-week trading range was $168.42 to $254.35. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.