Boeing earnings nosedive

Boeing (NYSE:BA) is scheduled to announce its first quarter earnings results this morning. Boeing has been in the spotlight after two deadly crashes involving its 737 MAX aircraft rattled the company, investors, regulators and the flying public.

Investors and analysts will be looking for information from Boeing on software updates for the 737 MAX, as well as any additional information on the crashes. Due to the worldwide grounding of the aircraft as well as halted deliveries, Boeing’s commercial aircraft revenue is expected to fall 7.5 percent to $12 billion.

Boeing said it would take an initial hit of more than $1 billion on the global grounding of the 737 MAX jetliner following two fatal crashes. The company suspended full-year financial guidance.

The company’s profits fell 21 percent in the first quarter in the aftermath of the crashes and the subsequent grounding of the planes worldwide.

Moreover, Boeing has cut production of the 737 MAX and has not received any new orders since the global grounding. According to Bloomberg, the 737 MAX was to become Boeing’s largest source of both revenue and profit in 2019.

Boeing is also facing numerous related problems, including lawsuits from shareholders and victims’ families, as well as a regulatory spotlight on its processes.