Boeing Co (NYSE:BA) stock rose 5.80% (As on October 27, 11:50:45 AM UTC-4, Source: Google Finance) though the company misses the earnings & revenue estimates for the third quarter of FY 22. The company lost $2.8 billion on fixed-price development programs for its defense business, including higher manufacturing and supply chain costs. Boeing’s commercial airplane revenue rose 40% even though deliveries came in below analyst estimates. Boeing said Oct. 11 that commercial airplane deliveries rose 32% to the second-highest level in almost four years. Still, the company delivered just 112 airplanes, short of analysts’ estimates of 120. Boeing Co. has reported a loss of $3.3 billion citing problems with its defence business, supply chain disruptions as well as regulatory hurdles in its commercial jet unit. The company has also reported an increase in revenue by four per cent from last year to $16 billion. In the quarter, Boeing has generated $2.9 billion in free cash which it says will keep on track for a positive free cash flow by the end of 2022. The US-based aerospace giant said that its losses deepened in the third quarter due to these difficulties and at least $2.8 billion worth of charges related to defence programmes, including its military refuelling tanker and Air Force One replacement jets. The  loss has also been attributed to supply chain disruptions and its effect on the company’s commercial jet business which is facing delays in the delivery of 737 jets. Additionally, Boeing is also facing regulatory hurdles with its latest 737, MAX 7 and MAX 10 models which are yet to receive certification from the US regulatory bodies by the end of the year.

Moreover, while the company was making some improvements, it continued to face challenges with a series of engineering, manufacturing and regulatory problems it encountered since the crashes of two Boeing 737 Max jets which collectively claimed the lives of over 300 people

BA in the third quarter of FY 22 has reported the adjusted loss per share of $6.18, missing the analysts’ estimates for the adjusted earnings per share of 11 cents. The company had reported the adjusted revenue growth of 4 percent to $16 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue of $18 billion. Cash and investments in marketable securities increased to $14.3 billion, compared to $11.4 billion at the beginning of the quarter, primarily driven by cash from operations. Total company backlog at quarter-end was $381 billion.