Aerospace company Boeing (NYSE:BA) was up in pre-market trading as the company’s losses narrowed in the third quarter. Loss per share came in at $3.26 in Q3 compared to a loss of $6.18 per share in the same period last year. Analysts were anticipating a loss of $3.18 per share.
The company’s revenues surged by 13% year-over-year to $18.1 billion in the third quarter as compared to analysts’ expectations of $18 billion. At the end of Q3, Boeing had a backlog of $469 billion, including over 5,100 commercial airplanes.
Boeing added that when it comes to its 737 airplanes, during the third quarter, a “supplier non-conformance was identified on the aft pressure bulkhead section of certain 737 airplanes.” However, the company clarified that this was not a safety issue, and its in-service fleet can continue to operate safely.
Due to this issue, the company expects that its near-term deliveries and production will be impacted. As a result, it is anticipating to deliver between 375 and 400 airplanes this year. Boeing plans to ramp up the delivery of 737 airplanes to 50 per month between 2025 and 2026.
Looking forward, management reiterated its FY23 forecast of operating cash flows in the range of $4.5 billion to $6.5 billion, while adjusted free cash flows are likely to range from $3 billion to $5 billion.
Is BA a Good Buy Right Now?
Analysts are cautiously optimistic about BA stock, with a Moderate Buy consensus rating based on 12 Buys and six Holds. The average BA price target of $249.94 implies an upside potential of 37.1% from current levels.
