Boeing had a tough 24 hours, but with CEO Kelly Ortberg's turnaround plan, analysts remain hopeful

• Boeing reported a immense loss, and its striking national rejected a caller statement connection connected Wednesday.
• CEO Kelly Ortberg has vowed to move astir nan institution and laid retired a four-point plan.
• Analysts are optimistic that Boeing tin summation accumulation and move forward.

Boeing had a time to hide Wednesday.

It began pinch nan institution releasing its third-quarter net report, wherever it posted a immense loss of $6.1 billion, mostly blamed connected nan ongoing onslaught by workers astatine its cardinal Seattle plant.

However, these mediocre results mostly aligned pinch Wall Street's predictions, and Boeing's banal value dipped only marginally successful pre-market trading.

CEO Kelly Ortberg vowed to "return Boeing to its erstwhile legacy" and said nan institution would attraction connected changing its culture. He was interviewed connected CNBC and reiterated his committedness to transformation, saying he wants to: "Get backmost to what everyone wants Boeing to be, this iconic institution building awesome craft and defense systems."

At nan aforesaid time, immoderate 33,000 union members successful nan Pacific Northwest were waiting to ballot connected Boeing's 3rd statement offer.

Wall Street analysts were hopeful that nan 35% salary emergence and accrued 401(k) contributions would beryllium approved — given that nan acting Labor Secretary had flown to Seattle to thief mediate talks.

But nan contract connection was again rejected, albeit by 64% of voters, alternatively than nan much than 95% who had turned down nan first offer. Boeing banal subsequently dipped 3%.

Over nan 4 years of nan deal, nan salary emergence would beryllium adjacent to nan 40% that nan national demanded. However, restoring nan accepted defined-benefit pension scheme — replaced pinch a 401(k) successful 2014 negotiations — has been a cardinal rumor for galore connected nan picket lines.

Boeing has appeared inflexible connected this issue, pinch its main negotiator telling The Seattle Times location is "no scenario" wherever nan accepted pension scheme would beryllium restored.

Bank of America analysts estimated that restoring this pension scheme would costs up to $400 cardinal annually. At nan aforesaid time, Anderson Economic Group predicted Boeing has mislaid complete $5 cardinal owed to nan strike.

The planemaker has announced plans to lay disconnected 10% of its workforce, positive further delays to its long-awaited 777X program.

Analysts stay affirmative connected Boeing's future

Yet Wall Street is optimistic that Ortberg tin return nan planemaker to a stronger position.

"Despite each nan play associated pinch Boeing, we proceed to judge that nan institution deserves a premium net aggregate because of nan expected ramp-up successful accumulation and its beardown craft backlog," analysts from William Blair said successful a Wednesday report.

Boeing's production has been constricted arsenic it faces supply-chain constraints and renewed scrutiny from regulators successful nan aftermath of January's Alaska Airlines blowout. But pinch a backlog of 5,400 planes worthy much than $500 billion, it is clear airlines still want its planes.

"If Boeing and Airbus amended deliveries, backlogs will beryllium reduced and summation customer confidence," Peter McNally, world caput of assemblage analysts astatine business investigation patient Third Bridge, told Business Insider successful an email.

He added that a superior situation from China's Comac, which has been wide touted arsenic a imaginable disruptor of nan Boeing-Airbus duopoly, has truthful acold grounded to materialize.

"Honestly, our experts perceive a batch little astir Comac coming than they did a fewer years ago, and these group person pointed to caller orders to Boeing and Airbus from Chinese customers arsenic evidence," McNally said.

In a note, Morningstar's Nicolas Owens called connected Boeing to laic retired a "clear and bold merchandise strategy and statesman designing craft to meet that strategy successful nan adjacent fewer years."

Otherwise, he added, it could further suffer crushed to Airbus successful nan narrowbody market, wherever nan A320 outsells nan 737 Max.

Since taking complaint successful August, Ortberg has had to contend pinch galore problems, and Wednesday's national ballot was surely a further blow.

Yet, pinch a four-point plan to amended spot and build a caller future, a way retired of nan situation appears much visible than before.