Boeing Reports Non-GAAP EPS of -$7.47, Falling Short by $5.09, While Revenue of $23.27B Exceeds Expectations by $1.14B
Q3 Earnings Report: Boeing reported a Q3 non-GAAP EPS of -$7.47, missing expectations by $5.09, while revenue increased by 30.4% year-over-year to $23.27 billion, surpassing estimates by $1.14 billion.
Production and Backlog: The company stabilized its 737 production at 38 units per month, with plans to increase to 42 per month following an agreement with the FAA; total backlog reached $636 billion, including over 5,900 commercial airplanes.
Stock Performance: Boeing's shares fell by 2.3% in after-hours trading following the earnings announcement.
Labor Issues: The strike at Boeing's St. Louis facility has entered its third month, with machinists rejecting a fourth contract offer.
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- Significant Performance Growth: BAE Systems reported sales of £30.7 billion ($41.7 billion) in 2025, a 10% year-on-year increase that drove operating profits up 9% to £2.93 billion, demonstrating strong performance amid rising global defense spending.
- Record Order Backlog: The company's order backlog reached £83.6 billion, an increase of £5.8 billion from 2024, reflecting robust demand for its aircraft, weapons, and warships, indicating sustained growth potential in the coming years.
- Future Growth Expectations: BAE anticipates sales growth of 7% to 9% in 2026, with projected cumulative free cash flow exceeding £6 billion from 2026 to 2028, showcasing the company's confidence in future market conditions and strategic investment decisions.
- Strategic Partnership Opportunities: Last year, BAE secured £36.8 billion in orders, including a £4.6 billion deal for 20 Typhoon aircraft with Turkey and a £10 billion agreement with Norway for Type 26 frigates, highlighting its critical role and influence in the European defense market.
- Antitrust Review Outcome: The FTC has approved Boeing's acquisition of Spirit AeroSystems, mandating the sale of certain Spirit operations to maintain competition and ensure innovation and fair pricing in the aviation supply chain, thereby alleviating potential impacts on Airbus.
- Compliance Requirements: The final order from the FTC requires Boeing to provide ongoing compliance updates and oversight documentation during the acquisition process, ensuring continued support for other aerospace manufacturers to avoid adverse market effects.
- Aviation Order Update: Air Astana has finalized an order for up to 15 Boeing 787-9 Dreamliners to modernize its widebody fleet, marking the airline's largest single aircraft purchase and further advancing its long-haul growth strategy.
- Stock Price Dynamics: Boeing shares were down 0.71% at $242.31 in early Wednesday trading, approaching its 52-week high of $254.34, indicating a cautiously optimistic market sentiment regarding its acquisition and new orders.
U.S.-Canada Relations: Recent tensions have emerged between the U.S. and Canada, affecting various sectors beyond just sports.
Canada's Defense Strategy: Canada has introduced a new defense strategy that may influence investment opportunities in the defense industry.
- Market Opening Expectations: European stocks are expected to open higher on Wednesday, with the U.K.'s FTSE index up 0.2%, Germany's DAX up 0.3%, France's CAC 40 up 0.4%, and Italy's FTSE MIB up 0.3%, reflecting investor optimism regarding global market developments.
- Inflation Data Release: The U.K.'s consumer price index for January is expected to cool to 3%, down from 3.4% last month, a figure closely monitored by the Bank of England as it considers future interest rate adjustments.
- Rising Unemployment Impact: During Tuesday's trading session, the pound dipped and British government bond yields fell as data revealed the U.K.'s unemployment rate rose to a five-year high, coupled with slowing wage growth, indicating signs of economic slowdown.
- Fed Minutes Focus: Traders will be watching for the Federal Reserve's minutes from the January policy meeting on Wednesday, which are expected to provide further insights into the state of the economy ahead of the personal consumption expenditures price index (PCE) data due on Friday.
- Tax Refund Impact: According to Wells Fargo's analysis, $150 billion is expected to flow into markets by the end of March as over 60% of tax refunds are issued, which will boost investments in risk assets like stocks and bitcoin.
- High-Income Consumer Reinvestment: Analyst Ohsung Kwon noted that additional savings from tax refunds will flow back into equities, particularly among high-income consumers, significantly enhancing their investment willingness and suggesting a return of the 'YOLO' investment strategy.
- Bitcoin as a Liquidity Proxy: Analysts indicated that bitcoin can serve as a proxy for liquidity, signaling shifts in investment patterns; despite a $105 billion decline in domestic liquidity over the past four weeks, bitcoin has pulled back approximately 29%.
- Stock Performance Expectations: Wells Fargo identified over two dozen stocks likely to outperform during tax season, including Robinhood and Boeing, the latter seeing a 32% increase in share price over the past year and delivering 46 airplanes in January, marking the third highest for that month in the company's history.
- Consumer and Industrial Stocks: The video highlights two stocks from the Consumer Discretionary and Industrial sectors, indicating that both industries have significant growth potential as long as the economy remains stable, which may attract investor interest.
- Boeing's Turnaround: Boeing (BA) is undergoing a significant turnaround, which could yield substantial returns for investors, especially as the company restores production capabilities and market confidence.
- Economic Stability Impact: The video emphasizes that the ongoing stability of the economy will be a key factor for the growth of these two stocks, prompting investors to monitor macroeconomic indicators to assess potential risks.
- Investor Focus: The video encourages viewers to pay attention to the long-term growth potential of these stocks and consider subscribing to the channel for more investment advice, reflecting a positive outlook on future market dynamics.










