Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Boeing Beats Estimates, Plans Further Job Cuts

By Lou Whiteman - Oct 28, 2020 at 9:50AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There's no quick fix to what ails the company.

Boeing ( BA -0.33% ) lost less money than expected in the third quarter, but the company's outlook served as a stark reminder of how long a post-pandemic turnaround will take.

Before markets opened Wednesday, the aerospace giant reported a third-quarter loss of $1.39 per share on revenue of $14.1 billion. Wall Street had expected a $2.32 per share loss on revenue slightly higher at $14.5 billion.

A Boeing Dreamliner in flight.

Image source: Boeing.

Boeing has been hit hard in 2020 due to the continued grounding of its 737 MAX and the coronavirus pandemic, which has stifled travel demand and caused airlines to slow expansion plans. Boeing finished the quarter with more than 4,300 commercial planes in its backlog, but many of those orders have been deferred and will not contribute to free cash flow anytime soon.

The company reported a $4.8 billion operating cash burn in the quarter, driven by lower deliveries and timing of expenses. Boeing does expect the 737 MAX to be cleared to fly again before year's end, which will allow it to resume deliveries of the planes and cut its cash burn.

Boeing had $27.1 billion in total liquidity at quarter's end, down from $32.4 billion at the beginning of the quarter.

The company said it expects airline passenger travel to need three years to recover, and is downsizing its commercial division in anticipation of falling demand. Boeing has increased its target for staff reductions by 11,000, hoping to bring its total head count to under 130,000 by the end of 2021.

Boeing had more than 143,000 employees as of Dec. 31, 2019.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Boeing Company Stock Quote
The Boeing Company
$197.85 (-0.33%) $0.65

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.