Why Shares of Boeing Are Falling Today
Shares of Boeing (NYSE: BA) were down 4% as of noon EDT on Wednesday following the company's second-quarter earnings report. The results, as expected, were bad, and the company was clear it expects it will need years to work through its current troubles.
Before markets opened Wednesday, Boeing reported a second-quarter loss of $4.79 per share on revenue of $11.8 billion, far worse than the $2.54 per-share loss on $13.16 billion in sales markets had been expecting. The company's defense business performed better than expected, but it was not enough to offset losses at commercial.
The commercial aviation business has been under pressure for more than a year, with Boeing's 737 Max grounded in March 2019 after two fatal accidents. For a while, Boeing has been able to fall back on sales of other jets, but the COVID-19 pandemic has caused travel demand to evaporate and led airlines to cut costs by grounding planes and deferring orders, hurting the entire commercial aerospace sector.
Source Fool.com
