Earnings

Boeing misses big on earnings but remains optimistic for 737 Max return

Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, Washington

Lindsey Wasson | Reuters

Boeing is expected to report third-quarter earnings before the market opens on Wednesday, as the aerospace giant faces a crisis with its top-selling 737 Max aircraft line.

Here’s what Wall Street expects:

  • EPS: $2.09 a share according to a Refinitiv survey of Wall Street analysts.
  • Revenue: $19.67 billion a share according to a Refinitiv survey of Wall Street analysts.

The company has been under scrutiny after two deadly Boeing 737 Max crashes killed a combined 346 people in the past year. Boeing took a $4.9 billion after-tax charter in the previous quarter, for funds to compensate airlines for the FAA’s grounding of the 737 Max planes in service.

But, although Boeing has developed a software fix for the implicated flight-control system that misfired in both crashes, federal regulators have yet to set a timeline for the certifying the 737 Max for flight. Additionally, last week the public learned that Boeing’s former lead pilot had warned about problems with the flight-control systems. That pilot, Mark Forkner, said in an email to an FAA official that he was “jedi mind-tricking regulators into accepting training the training that I got accepted by FAA etc.” The FAA last week said Boeing withheld these “concerning” messages for months from regulators.

The crisis has now seen two executive leadership changes in the past month, with the removal of the head of Boeing’s commercial airplane division Kevin McAllister shortly following the board stripping CEO Dennis Muilenburg of his chairman role.

Muilenburg is scheduled to testify before a Congressional transportation panel on Oct. 30.

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