Boeing Co. (BA) Reports Another Disappointing Quarterly Performance

Boeing Co. (NYSE:BA) was founded way back in 1916 by William E. Boeing. It initially started making money by selling military aircrafts to the U.S. Army in the 1920s. In the mid-90s, the company shifted its focus to building commercial aircrafts. The company diversified into new markets like energy production marine craft, and agriculture for some time but its main focus remained on the aerospace business.

The Chicago, Illinois-based aerospace company incurred heavy losses during 2020, as the Covid-19 pandemic severely affected its operations. BA stock has lost about 40 percent of its value over the past year.

Boeing on Wednesday reported another massive quarterly loss. The company posted a loss of $8.44 billion, or $14.65 per share for the fourth quarter, significantly higher than a loss of $1.01 billion, or $1.79 per share in the comparable period of 2019. Analysts on average were looking for a loss of $1.64 per share.

Revenue also dropped 37 percent on a year-over-year basis to $4.73 billion, missing the consensus forecast of $4.87 billion. If we look at the performance of key segments, revenue at commercial airplanes unit plunged 37 percent to $4.73 billion and revenue from the global services business plummeted 20 percent to $3.73 billion. On the bright side, revenue from defense, space and security businesses jumped 14 percent to $6.78 billion.

Meanwhile, the company postponed the entry of its 777X jetliner into commercial service. It now expects to deliver the wide-body 777X jet to airlines in 2023. The delay was partly attributed to the fragile demand caused by the pandemic.

BA shares fell 3.97 percent to $194.03 in the previous trading session following the disappointing quarterly performance.