Boeing Co. reported a 59.5% year-over-year decline in its third-quarter core EPS, which also missed analysts' expectations, as the continued grounding of the 737 MAX aircraft took a heavy toll on revenues.
Boeing's core EPS fell to $1.45 in the quarter that ended Sept. 30 from $3.58 in the year-ago period. The S&P Global Market Intelligence consensus normalized EPS estimate for the quarter was $2.12.
Core operating earnings totaled $895.0 million, a decrease of 52.6% from $1.89 billion in the prior-year quarter.
GAAP net earnings decreased 50.6% on an annual basis to $1.17 billion, or $2.05 per share, from $2.36 billion, or $4.07 per share.
Revenues decreased 20.54% on an annual basis to $19.98 billion from $25.15 billion.
Boeing said the drop in third-quarter revenues reflected lower deliveries of the 737 aircraft. Total commercial airplane deliveries fell to 62 in the quarter from 190 a year earlier.
The 737 MAX airplanes have been grounded globally since March following a fatal Ethiopian Airlines crash. Boeing said it continues to work with the U.S. Federal Aviation Administration and other industry regulators around the world for the potential return to service of the troubled aircraft.
Boeing maintained its expectation that regulators would start approving the 737 MAX's return to service in the fourth quarter. The company also expects to gradually raise its monthly production rate for the 737 aircraft from 42 jets to 57 by late 2020. In the third quarter, estimated production costs for the 737 aircraft rose by $900 million.
Boeing also said it will lower its production rate for the 787 airplanes to 12 per month for about two years, starting in late 2020, due to current global trade conditions.
For the 777X program, Boeing said it is now targeting early 2021 for the first delivery of the new twin-engine jet.