Boeing’s Quarterly Loss Contributing to Dow’s 400 Point Tumble

Earnings continued to dominate the trade in the U.S. stock markets on Wednesday ahead of major releases by Tesla and IBM after the closing bell. So far, more than 90 S&P 500 companies have reported fourth-quarter earnings, and 68% of them posted stronger-than-expected results, according to FactSet.

Nonetheless, the bulk of earnings reports are still coming with investors worried about upside surprises and solid guidance. This is treating a tentative trade as investors continue to assess whether investor money will flow into growth stocks or value stocks.

The major companies reporting earnings earlier Wednesday include: Boeing and AT&T.

Boeing Posts Quarterly Loss as Labor and Supply Strains Overshadow Increase in Jet Demand

Boeing’s quarterly earnings report showed the airplane manufacturer posted a $663 million loss for the fourth quarter as supply chain issues weighed on results despite a rebound in aircraft sales and deliveries that drove up revenue.

CNBC reported that airlines and aircraft manufacturers have benefited from a sharp recovery in air travel, one of the most affected industries from the COVID pandemic. But Boeing’s leaders have been hesitant to ramp up aircraft production until the supply chain has stabilized.

The report showed that for the full year, Boeing had a loss of $5 billion despite a 7% increase in revenue to $66.6 billion. The adjusted loss per share was $1.75 versus expected earnings per share of 26 cents. Meanwhile revenue came in at $19.98 billion versus $20.38 billion expected.

“We’re proud of how we closed out 2022, and despite the hurdles in front of us, we’re confident in our path ahead,” CEO Dave Calhoun said Wednesday in a memo to employees. “We have a robust pipeline of development programs, we’re innovating for the future and we’re increasing investments to prepare for out next generation of products.

Shortly after the opening bell at 15:34 GMT, share of Boeing are trading $207.00, down $4.98 or -2.35%.

AT&T Forecasts Annual Profit Below Estimates

AT&T Inc. forecast annual profit below Wall Street expectations on Wednesday, joining rival Verizon in bracing for a slowdown in wireless customer growth amid rising competition, Reuters reported.

AT&T said it was expecting earnings for 2023 in the range of $2.35 and $2.45 per share, compared with analysts’ estimates of $2.56 per share, according to Refinitiv data.

Larger rival Verizon forecast annual profit below expectations on Tuesday, and said it was expecting wireless service revenue to grow between 2.5% and 4.5% in 2023.

Shortly after the cash market opening, AT&T is trading $20.37, up $1.21 or +6.3%.