Boeing

A resumption of orders at Boeing looks to have driven an increase in durable-goods orders last month, says Stephen Brown, North America economist at Capital Economics. Orders picked up pace in March, government figures show Wednesday, but this was down largely to a big swing in civilian aircraft orders. “The rise in headline orders was largely due to a … rebound in non-defence aircraft orders amid the resumption of orders at Boeing, following the 737 Max-related woes at the start of the year,” Brown notes, referring to safety concerns that took a heavy toll on the planemaker in the first months of the year. Stripping out this volatile component, heavy-duty goods saw only a slight increase on the month and overall investment in business equipment probably declined, Brown writes in a note.

Boeing earnings are coming Wednesday morning, before the market open. Investors have to pay attention to, well, everything. There is the obvious topic of production quality: Boeing stock has lost more than 30% since an emergency door plug blew off a 737 MAX 9 jet operated by Alaska Air on Jan. 5. The incident resulted in slower production, millions paid in compensation to airline customers, and more oversight by the Federal Aviation Administration. There is also the issue of management succession. In March, current CEO Dave Calhoun announced he would step down at the end of the year, without naming a successor. Jefferies analyst Sheila Kahyaoglu recently wrote about what she would do as a new Boeing CEO. One thing, she says, is to walk away from Boeing’s $10 billion annual free cash flow target by 2026. It creates unnecessary expectations, she wrote in an April 21 note: “External pressures

Boeing’s (BA) decision on who will be the next chief executive is “critical” for the company’s survival, RBC Capital Markets said in a note Monday. RBC analysts believe the “best” choice to succeed David Calhoun is current GE Aerospace CEO Larry Culp, who they said has the “right skill set” to address Boeing’s most important issues. Culp is also the most popular choice among investors, although he has not indicated that he is ready to leave GE, according to the note. “We believe the BA [board of directors] appreciates it can’t miss on this decision, and this could be a strong positive catalyst for the stock,” RBC said. The next CEO faces “substantial” issues such as cleaning up the manufacturing process, addressing the balance sheet, restoring confidence from stakeholders, and launching a new clean sheet narrowbody aircraft. “We would highlight that the next CEO should have broad support from regulators,

Investors are selling Boeing stock aggressively. It’s hard to see where shares are going next. Shares of the commercial aerospace giant closed at $167.82, down 1%, on Monday, while the S&P 500 and Dow Jones Industrial Average fell 1.2% and 0.7%, respectively. Rising bond yields, which signal the market’s growing belief that interest rate cuts aren’t coming, along with unrest in the Middle East, were responsible for a large proportion of Monday’s losses. Boeing stock has now fallen for 11 consecutive days. It’s the longest streak since an 11-day streak in November 2018, according to Dow Jones Market Data. Along with market-related factors, problems with the 737 MAX have weighed heavily on investor sentiment. An emergency door plug blowout on a 737 MAX 9 jet operated by Alaska Air on Jan. 5 has resulted in more regulatory oversight, slower MAX production, and falling earnings estimates from Wall Street analysts. Shares

B of A Securities analyst Ronald Epstein maintains Boeing (NYSE:BA) with a Neutral and lowers the price target from $210 to $190.

Boeing’s (BA) slower-than-expected delivery from production may be best for safety, but is “negative” for the stock and free cash flow generation, Morgan Stanley said in a note Wednesday. On Tuesday, the planemaker said it delivered 83 commercial jetliners in Q1, the lowest since mid-2021. Morgan Stanley said the slowdown amid scrutiny by the Federal Aviation Administration would make it hard for the company to meet production and free cash flow targets. “Ultimately, the longer the FAA’s oversight pressures monthly aircraft deliveries on production, the more challenging it would be for Boeing to meet its 2025/2026 aircraft production and [$10 billion] free cash flow targets,” the firm said, adding that the company’s free cash outflow outlook is based on monthly production of 50 for Boeing 737 Max and 10 for Boeing 787. Morgan Stanley cut Boeing’s price target to $180 from $235, but maintained the company’s equalweight rating because it

Boeing’s (BA) increased regulatory oversight and slower production could make the company’s delivery and free cash flow targets difficult to achieve, Morgan Stanley said Wednesday while pointing to lower-than-expected first-quarter deliveries from the production line. The brokerage reduced its price target on the stock to $180 from $235. It reiterated an equal-weight rating, saying that the risk-reward is balanced at current levels. Boeing data showed Tuesday that its first-quarter deliveries tumbled to 83 from 130 a year earlier. Deliveries of the 737 model, which has been the focus of several recent incidents including when a side panel blew off of an Alaskan Air (ALK) flight in January, was 67 in the first quarter, according to Boeing. Data from Cirium point to 40 of those coming from the production line and 27 from inventory, Morgan Stanley said. “An estimated 40 737 deliveries from the production line are much lower than we

Boeing delivered two dozen 737 MAX jets in March, down 54% year over year. That result wasn’t entirely bad news, but the numbers mean investors should brace for lower quarterly earnings than Wall Street is forecasting. The aerospace company said Tuesday that it shipped 29 jets, including 24 MAX planes, in March. It delivered 64 jets, including 52 MAX planes, in March 2023. For the first quarter, Boeing delivered 83 planes, including 67 MAX jets. That compares with 130 jets, including 111 MAX models, in the first quarter of 2023. Not only are the numbers lower than they were a year earlier, the quarterly results look light. Wall Street analysts had projected 104 first-quarter deliveries, including 71 MAX jets. Boeing stock was unaffected in midday trading Tuesday. Shares were down 0.3% at $181.11, while the S&P 500 and Dow Jones Industrial Average were off 0.5% and 0.6%, respectively. The stock

Boeing (BA) on Tuesday logged steep annual declines in its deliveries for March and the first quarter amid ongoing quality checks and investigations by regulators. The plane maker delivered 29 jets last month, comprising mainly the 737 Max aircraft, up from a total of 27 deliveries in February but down from 64 a year earlier, according to data posted on its website. In March 2023, Boeing delivered 52 737 Max jets. Its first-quarter deliveries tumbled to 83, which media outlets said was the lowest since mid-2021, from 130 a year earlier. The company’s shares were down 1.8% in Tuesday afternoon trade. The company booked 113 orders in March, including 85 737 Max planes from American Airlines Group (AAL), taking its first-quarter tally to 131, up from 120 in the year-ago quarter. Boeing booked 15 orders in February and 60 in March 2023. As of March 31, the company had 6,259

By Mike Murphy Boeing denies allegations, says analysis found no safety concerns A whistleblower has reportedly complained to federal regulators that Boeing Co. overlooked safety concerns in the production of its 787 Dreamliner jets. The New York Times and Wall Street Journal reported Tuesday that the Federal Aviation Administration is investigating claims made by Sam Salehpour, a veteran Boeing engineer, who said the plane maker used shortcuts during the 787 assembly process that could critically strain fasteners in the planes’ fuselage. He claimed the strained joints could reduce the planes’ lifespan and potentially cause catastrophic damage. Boeing denied the allegations, and said it is “fully confident” in the 787 Dreamliner. “These claims about the structural integrity of the 787 are inaccurate and do not represent the comprehensive work Boeing has done to ensure the quality and long-term safety of the aircraft,” Boeing said in a statement. Boeing said the issues

Boeing (BA) 737 Max output dropped to as low as single digits in late March as quality checks by US regulators slowed down the assembly line, Reuters reported Wednesday, citing industry sources. The jet maker set a production cap of 38 units a month following regulatory scrutiny after a blowout on a 737 Max jet in January, but the production rate has been well below this level in recent weeks, the report said.

These 7 steps can give Boeing a path to recovery By several accounts, this long-overdue reckoning resulted from a revolt by the company’s airline customers. This was Boeing’s best week in many years. A dysfunctional management team was ousted. President and CEO David Calhoun will step down at the end of the year. Board chairman Larry Kellner announced that he would not stand for reelection. Stan Deal, CEO of Boeing Commercial Airplanes, left the company immediately. By several accounts, this long-overdue reckoning resulted from a revolt by the company’s airline customers, concerned about missed production plans, uncertain new model-certification schedules, and high-profile incidents resulting from manufacturing “quality escapes.” Now comes the hard part. Getting Boeing (BA) back on track will take years, maybe decades. Here’s what to watch for as the company tries to restore itself to health: 1. Who gets the top job? Calhoun, like 2005-2015 CEO Jim McNerney,