The Boeing stock price fell by 1.74% in premarket trading on October 28, 2024, which can be attributed to several key factors1:
- Q3 Earnings Miss and Struggles: Boeing's third-quarter financial results fell short of expectations, with a reported 1% decline in revenue compared to the previous year. The company's adjusted loss per share widened to $10.44 from $3.62 in the same quarter last year, missing the consensus estimate of $10.342.
- Ongoing Strikes and Labor Unrest: The impact of a work stoppage by the International Association of Machinists and Aerospace Workers (IAM) and previously announced charges on commercial and defense programs continued to affect the company's performance. The strike, which has been ongoing for over five weeks, has halted much of Boeing's Seattle-area production and adds to the company's challenges, including a $6 billion quarterly loss and ongoing cash burn2.
- Job Cuts and Financial Challenges: Boeing's announcement of cutting 17,000 jobs, which is 10% of its global workforce, and the expected $5 billion in pre-tax earnings charges in the third quarter due to restructuring and other costs, further weighed on the stock price34.
- Market Sentiment and Economic Conditions: Broader market sentiment and economic conditions also played a role, with concerns over interest rates and inflation impacting investor sentiment towards stocks like Boeing5.
In summary, Boeing's stock price decline in premarket trading on October 28, 2024, is a result of a combination of factors including Q3 earnings miss, ongoing strikes and labor unrest, job cuts and financial challenges, and broader market sentiment and economic conditions.
10/28/2024 01:20pm
