Key Takeaways
- Boeing shares rose in early trading Wednesday after the aircraft manufacturer reported a smaller loss than expected for the fourth quarter of 2023.
- However, Boeing suspended its forward guidance for 2024 amid safety concerns after a mid-flight incident involving a Boeing 737 Max 9 aircraft earlier this month.
- Boeing CEO Dave Calhoun said Boeing’s focus will be on improving quality control.
Boeing (BA) shares rose over 3% in early trading Wednesday after the aircraft maker reported a smaller loss than expected for the fourth quarter, though it suspended its forward guidance amid safety concerns.
For the fourth quarter, Boeing reported revenue of $22.02 billion, above analyst expectations. The company’s net loss of $30 million was an improvement on a $663 million loss for the same period a year ago. Boeing reported a loss of 47 cents per share versus a loss of $1.75 per share in the year-ago quarter.
However, the aircraft maker said it would suspend its forward guidance for 2024 as it continues to address safety issues and concerns following a mid-flight incident involving a Boeing 737 Max 9 earlier this month. In its earnings release, Boeing said it “continues to cooperate transparently” with the Federal Aviation Administration (FAA) during its investigation.
The company did deliver production guidance, saying it would cap 737 MAX production at 38 planes per month until the FAA has completed its quality checks. Boeing said it will build five 787 Dreamliners per month, with a plan to increase that number to 10 per month.
CEO Dave Calhoun said Boeing would focus on improving quality control, writing in a message to employees, “We will simply focus on every next airplane while doing everything possible to support our customers, follow the lead of our regulator, and ensure the highest standard of safety and quality in all that we do.”
Boeing shares were 3.3% higher at $207.01 per share as of about 10:20 a.m. ET Wednesday, but have lost more than 17% of their value over the past month.