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

By:
on Oct 26, 2022
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  • Boeing's Q3 revenue missed Street expectations by some $2.0 billion.
  • Its free cash flow in the fiscal third quarter was still encouraging.
  • Hightower's Stephanie Link shares her outlook on the Boeing stock.

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.

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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.