Shares of aerospace and defense company Boeing (NYSE:BA) fell 3.8% in the afternoon session as investors focused on production delays and potential labor disputes despite reporting better-than-expected second-quarter revenue and a smaller loss.

Boeing stock (ticker: BA) fell after the company announced a loss per share of $1.24 on sales of $22.7 billion, better than analysts projected.

Boeing Co. managed to slow a cash outflow in the second quarter, indicating that a turnaround initiated by Chief Executive Officer Kelly Ortberg a year ago is paying off as the company delivers more aircraft.

Boeing on Tuesday reported second-quarter revenue above forecasts as deliveries of commercial jets surged, but that wasn’t enough to encourage investors to bid up its stock after recent outperformance.

Bottom line: Boeing shares are in a new bull market trend with a 12-month price target of $300.

Boeing is set to report its second-quarter earnings before the bell. Wall Street analysts expect Boeing will halve its second-quarter loss from a year ago. Boeing executives will host an earnings conference call at 10:30 a.m. ET.

Boeing’s second-quarter loss narrowed and revenue improved as the aircraft manufacturer delivered more commercial planes in the period.

Boeing and Sweden's Saab are in talks with Britain's BAE Systems about teaming up on a future replacement of Britain's Hawk trainer in a growing niche of the fast jet industry, three people familiar with the matter said.

But the CEO says the company won’t seek to boost output of its 737 planes until it is better prepared.

Boeing reported second quarter earnings on Tuesday that topped expectations and stemmed the tide of cash burn that has plagued the company since early last year as CEO Kelly Ortberg continues his turnaround of the beleaguered jet maker.