ARLINGTON, Va. - The Boeing Company (NYSE:BA) [NYSE: BA] today disclosed its major program deliveries for the third quarter of 2024, spanning both its commercial and defense operations. The aerospace giant is scheduled to release detailed financial results for the quarter on October 23.
In the commercial sector, Boeing delivered a total of 116 airplanes, including 92 of its 737 model, 6 of the 767, 4 of the 777, and 14 of the 787 Dreamliner. This brings the year-to-date delivery figures to 291 aircraft across these models.
On the defense front, the company handed over 34 units, comprising new and remanufactured AH-64 Apache (NASDAQ:APA) helicopters, CH-47 Chinook helicopters, F-15 and F/A-18 fighter jets, KC-46 tankers, MH-139 helicopters, P-8 maritime patrol aircraft, and T-7A trainers.
The delivery data, which includes new-build production units as well as remanufactured and modified units, is a key indicator of Boeing's production pace and provides insights into the company's operational performance prior to the full financial disclosure later this month.
It is important to note that the delivery information provided by Boeing will not be considered final until the company issues its quarterly financial results.
This announcement is based on a press release statement from The Boeing Company. Boeing's stock is publicly traded on the New York Stock Exchange under the ticker symbol BA.
In other recent news, Boeing has been targeted by Italian prosecutors over suspected defective parts used in the 787 Dreamliner aircraft. The parts, produced by an Italian firm for Boeing, were found to be made from lower-cost, non-compliant materials, potentially impacting aviation safety. In addition, Boeing is set to resume talks with its largest union to resolve a dispute that led to a strike involving approximately 33,000 factory workers.
Simultaneously, United Launch Alliance, a joint venture between Boeing and Lockheed Martin (NYSE:LMT), announced the successful second launch of its Vulcan rocket, a significant step toward Pentagon mission certification. Deutsche Bank (ETR:DBKGn) has revised its financial outlook for Boeing, reducing the stock price target from $225.00 to $195.00, yet maintaining a Buy rating. This adjustment is due to an anticipated larger free cash flow burn for the third quarter, influenced by the ongoing strike and pressures within Boeing's Defense segment.
Furthermore, Boeing is reportedly considering a $10 billion stock sale amid substantial financial strain and ongoing labor disputes. The aerospace giant also faces potential safety risks identified by the U.S. National Transportation Safety Board in the rudder control systems of over 40 international Boeing 737 operators. These are some of the recent developments that investors should be aware of.
InvestingPro Insights
As Boeing prepares to release its detailed financial results for the third quarter of 2024, InvestingPro data and tips offer additional context to the company's performance and financial health.
Boeing's market capitalization stands at $95.62 billion, reflecting its position as a major player in the aerospace industry. However, the company's financial metrics paint a complex picture. Boeing's revenue for the last twelve months as of Q2 2024 was $73.56 billion, but it experienced a revenue decline of 14.61% in Q2 2024 compared to the previous year.
InvestingPro Tips highlight some challenges facing Boeing. The company "may have trouble making interest payments on debt" and "suffers from weak gross profit margins." Indeed, the gross profit margin for the last twelve months as of Q2 2024 was only 10.46%, which is relatively low for the industry.
Despite delivering 116 commercial airplanes in Q3 2024, Boeing's financial performance remains under pressure. The company's P/E ratio is negative at -27.47, indicating that it is not currently profitable. This aligns with another InvestingPro Tip stating that "analysts do not anticipate the company will be profitable this year."
The upcoming earnings release on October 23 will be crucial for investors to assess Boeing's financial trajectory. InvestingPro offers 12 additional tips for Boeing, providing a more comprehensive analysis of the company's financial situation and market position.
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