Why Is Boeing (BA) Down 6.6% Since Last Earnings Report?

Core Viewpoint - Boeing's recent earnings report showed a wider-than-expected loss, but revenues increased significantly year-over-year, indicating potential operational improvements despite ongoing challenges [2][4]. Financial Performance - The adjusted loss for Q3 2025 was $7.47 per share, worse than the expected loss of $3.68, but improved from a loss of $10.44 per share in the same quarter last year [2]. - Revenues reached $23.27 billion, exceeding the consensus estimate of $21.92 billion by 6.2% and representing a 30.4% increase from $17.84 billion in the previous year [4]. - The total backlog increased to $635.69 billion from $618.54 billion at the end of Q2 2025 [5]. Segment Performance - Commercial Airplane Segment: Revenues surged 49% year-over-year to $11.09 billion, driven by higher jet deliveries, although it incurred an operating loss of $5.35 billion, worsening from a loss of $4.02 billion a year ago. Boeing delivered 160 commercial planes, a 38% increase year-over-year [6]. - Defense, Space & Security (BDS): Revenues grew 25% to $6.90 billion, with an operating income of $0.11 billion compared to a loss of $2.38 billion in the prior year. The backlog for this segment stood at $76 billion, with 20% from international clients [7]. - Global Services: Revenues increased by 10% to $5.37 billion, generating an operating income of $938 million, up 12% from the previous year [8]. Financial Condition - At the end of Q3 2025, Boeing had cash and cash equivalents of $6.17 billion and short-term investments of $16.81 billion, down from $13.80 billion and $12.48 billion respectively at the end of 2024 [9][10]. - Long-term debt decreased to $44.61 billion from $52.59 billion at the end of 2024. The operating cash outflow for the first nine months of 2025 was $0.27 billion, significantly improved from $8.63 billion in the same period of 2024 [10]. Market Sentiment - There has been a downward trend in estimates, with a consensus estimate shift of -82.03% in the past month, leading to a Zacks Rank of 4 (Sell) for Boeing [11][13]. - Boeing currently holds a strong Growth Score of A but lags in Momentum with a C and has an overall VGM Score of D, indicating challenges in the value investment strategy [12]. Industry Comparison - Boeing operates within the Zacks Aerospace - Defense industry, where competitor Textron has seen a 4.6% gain over the past month, reporting revenues of $3.6 billion, a 5.1% year-over-year increase [14].