Boeing has had a tough 24 hours, but analysts remain hopeful

• Boeing reported a huge loss and its striking union rejected a new contract offer on Wednesday.
• CEO Kelly Ortberg has promised to turn the company around and presented a four-point plan.
• Analysts are optimistic that Boeing can increase production and move forward.

Boeing had a day to forget on Wednesday.

It started with the company releasing its third-quarter earnings report, in which it posted a huge $6.1 billion loss, largely due to the ongoing strike by workers at its main Seattle plant.

However, these poor results were largely in line with Wall Street forecasts, and Boeing's stock price fell only slightly in premarket trading.

CEO Kelly Ortberg vowed to “return Boeing to its former heritage” and said the company would focus on changing its culture. He was interviewed on CNBC and reiterated his commitment to transformation, saying he wanted to: “Get back to what everyone wants Boeing to be: this iconic company that builds great aircraft and defense systems.”

At the same time, about 33,000 union members in the Pacific Northwest were waiting to vote on Boeing's third contract offer.

Wall Street analysts were confident the 35% pay raise and increased 401(k) contributions would be approved – since the acting labor secretary flew to Seattle to help broker the talks.

But the contract offer was again rejected, albeit by 64% of voters rather than the more than 95% who rejected the first offer. Boeing shares then fell 3%.

Over the four years of the agreement, the wage increase would be close to the 40% demanded by the union. However, restoring the traditional defined benefit pension plan – which was replaced by a 401(k) plan in 2014 negotiations – was a key issue for many picketers.

Boeing has been inflexible on the issue, with its chief negotiator telling the Seattle Times that there is “no scenario” in which the traditional pension plan would be restored.

Analysts at Bank of America estimated that restoring that pension plan would cost up to $400 million annually. At the same time, the Anderson Economic Group predicted that Boeing lost over $5 billion as a result of the strike.

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

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Analysts continue to see Boeing's future as positive

Still, Wall Street is optimistic that Ortberg can put the aircraft maker back in a stronger position.

“Despite all the drama surrounding Boeing, we continue to believe the company deserves a premium earnings multiple based on expected production increases and its high aircraft inventory,” analysts at William Blair said in a report Wednesday.

Boeing's production has been limited as the company faces supply chain constraints and renewed scrutiny from regulators following the Alaska Airlines bankruptcy in January. But with an order backlog of 5,400 aircraft worth more than $500 billion, it's clear airlines still want their planes.

“If Boeing and Airbus improve deliveries, backlogs will be reduced and customer confidence will be increased,” Peter McNally, global head of sector analysts at economic research firm Third Bridge, said in an email to Business Insider.

He added that a serious challenge from China's Comac, widely touted as a potential disruptor of the Boeing-Airbus duopoly, has so far failed to materialize.

“Frankly, our experts are hearing a lot less about Comac today than they were a few years ago, and those people have pointed to recent orders from Chinese customers to Boeing and Airbus as evidence,” McNally said.

In a note, Morningstar's Nicolas Owens called on Boeing to set a “clear and bold product strategy and begin developing aircraft consistent with that strategy over the next few years.”

Otherwise, he added, the company could lose further ground in the narrowbody market, where the A320 outperforms the 737 Max.

Ortberg has faced many problems since taking office in August, and Wednesday's union vote was certainly another setback.

But with a four-point plan to boost confidence and build a new future, a route out of the crisis appears more visible than ever.