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Investing.com – The full extent of the cost for Boeing (NYSE:) due to the grounding of its best selling plane, the 737 Max, was laid bare in its fourth quarterly results Wednesday, with the company posting its first annual loss in more than two decades.
Boeing (NYSE:) announced a loss per share of $2.33 in the fourth quarter, on revenue of $17.91 billion, a drop of 37%. Analysts polled by Investing.com anticipated earnings per share of $0.6 on revenue of $21.65 billion. The company detailed the costs associated with the grounding of the series, taking a total charge of $18.6 billion. This resulted in an annual net loss of $3.47 a share, the first since 1997.
Boeing (NYSE:) shares lost over 2% in pre-market trade following the report, and are down over 29% from its 52 week set on March 1, 2019.
Boeing (NYSE:) shares are down 2% from the beginning of the year and are trading at $310.00 , still down 29.02% from its 52 week high of $446.01 set on March 1, 2019. They are under-performing the which is up 0.95% year to date.
“We recognize we have a lot of work to do,” said Boeing President and Chief Executive Officer David Calhoun. “We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public.”
We don’t think Boeing can reach full operational normalcy in the near-term — and one of the main impediments in this process is regaining public trust. Boeing is certainly capable of solving the technical issues required to make the MAX a viable revenue generator again, but that process is also closely tied with winning back public confidence.
Boeing follows other major Capital Goods sector earnings this month
Boeing’s report follows an earnings beat by United Technologies on Tuesday, who reported EPS of $1.94 on revenue of $19.55B, compared to forecasts EPS of $1.84 on revenue of $19.4B.
ASML ADR had missed expectations on January 22 with fourth quarter EPS of $2.99 on revenue of $4.47B, compared to forecast for EPS of $3.01 on revenue of $4.35B.
Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar
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