Boeing (NYSE: BA) shares continued to decline this month, reaching a low of $198 on Friday. This price point represents the lowest level for the stock since March and is 22% below its year-to-date high.
The drop comes as the company navigates a series of operational and commercial challenges. CEO Kelly Ortberg has warned that a wing issue may slow efforts to increase the production rate of the 737 MAX. Additionally, the certification of the 777X jet faces uncertainty, with Ortberg stating that a GE engine issue could push certification into next year.
Commercial operations are also facing headwinds. A deal between Chinese airlines to purchase 200 jets—announced in May—has reportedly hit a snag. Beijing is seeking guarantees on the long-term supply of engine parts and services, while the White House has maintained that post-sale maintenance was not part of the original agreement.
Despite these hurdles, Boeing has secured new contracts. The company received an order for 20 737 MAX planes from Lufthansa and a $112 million contract from Saudi Arabia for F-15 training upgrades. Additionally, Boeing is in talks with NASA for 10 more Starliner missions.
Financial results for the first half of the year show revenue growth, with second-quarter revenue increasing by 8% to $24.5 billion. Analysts project the company's annual revenue will reach approximately $98 billion this year and $112 billion next year. If earnings per share turn positive next year, the company is expected to generate $4.09 per share.
