Boeing 2024 Deliveries Forecast Reduced at Jefferies Amid Ongoing Strike

Boeing Strike Expected to Impact Plane Deliveries, Analysts Warn

A strike by Boeing workers on the US West Coast is anticipated to hinder the aerospace company’s plane deliveries this year, according to insights from analysts at Jefferies.

In a recent communication to clients, Jefferies lowered its price target for Boeing by 55% to $240. The analysts noted that if the labor action concludes by early October, they now project deliveries for 2024 to reach 422, a decrease from their earlier estimate of 480.

Furthermore, the forecast for 2025 deliveries has been revised down to 600 from 672. This revision has led the analysts to expect Boeing to incur an annual loss of $6.40, a significant change from their prior outlook of a loss of $4.25. Wall Street’s consensus places the expected loss at $4.71.

For the upcoming year, Boeing is anticipated to post earnings per share of $2.20, which is considerably lower than Jefferies’ earlier prediction of $5.60.

The International Association of Machinists and Aerospace Workers (IAM), representing over 30,000 striking Boeing employees in the US Pacific Northwest, are in tense negotiations with the company regarding compensation and benefits. Although IAM and Boeing previously reached an agreement, workers rejected the deal earlier this month, leading to the initiation of the strike.

Reports indicate that Boeing started implementing planned furloughs for thousands of employees in Washington State and Oregon last week, suggesting the company may be gearing up for a prolonged strike.

Analysts have cautioned that an extended strike could inflict substantial financial damage on Boeing, potentially costing the company billions at a time when its safety record is already under scrutiny. Chief Executive Kelly Ortberg, who assumed the role in August, has identified resolving the strike as a "top priority."