Boeing

Boeing CFO Says Company Will Move Toward Steady 737 Production Rate Of 38 Per Month In Second Half Of 2024; It Is Cycling 737 Production At 38 Per Month But Is Having To Slow Line Periodically.

Boeing (BA) reported Tuesday it delivered 27 aircraft in January 2024 , down from 67 in December and 38 a year earlier. The plane manufacturer booked three gross orders last month, down from 371 in December and 55 a year earlier, according to data on its website.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price remains $194, reflecting a 25x multiple applied to our 2025 EPS estimate, below The Boeing Company (NYSE:BA)’s recent historical forward average. We think a discounted multiple is reasonable in light of elevated regulatory risk. We cut our 2024 EPS estimate by $0.67 to $3.34, but leave 2025’s at $7.76. BA noted recently that its January production cadence was below the production limit of 38 737-MAX aircraft that has been temporarily imposed by the FAA. We still think BA will gradually expand production toward that 38 limit during 2024, but our EPS reduction in 2024 reflects a slower pace, particularly in 1H 2024. The secular backdrop for BA remains attractive, given a lot of expected retirements of aging aircraft over the next 20 years.

FAA Administrator Says Has Not Determined How It Will Define Process To Allow Boeing To Eventually Increase 737 Production; Says It Must First Complete Audit And “Down The Road” Will Gauge What That Means For Boeing Increasing 737 Production.

Boeing Says It Is Implementing Plans To Improve Overall Quality And Stability Across The 737 Production System。

BofA Securities analyst Ronald J. Epstein reiterates a Neutral rating, with an unchanged price target of $225 on Boeing Co (NYSE:BA) and revised estimates following its 737 production halt. The analyst says that the freezing of 737 production by the FAA will put significant pressure on Boeing’s 2025/2026 production and FCF targets. However, the forced slowdown will ultimately benefit Boeing in the long term, and the resulting stronger production system will drive 737 rates beyond 50 more effectively with less rework, writes the analyst. Also, the analyst expects the strong demand & duopoly to support mid-term market share. Consequently, the analyst raised EPS estimates to $0.70 from $0.25 in FY24 and $6.55 from $6.35 for FY25 while lowering forecasts to $8.90 from $9.15 in FY26. Today, Boeing shares dipped as it reportedly discovered new quality defects in its 737 Max airplanes. Boeing announced on Sunday that it had identified two mis-drilled holes on the

The latest problems with Boeing’s 737 MAX have reignited a debate among analysts and investors about who should run a global commercial aerospace company — an ace engineer or a professional manager. “To me, the [Boeing] problem is not the engineers, the problem is management,” says Vertical Research Partners analyst Rob Stallard. Of course, Boeing, and its chief rival Airbus need both. But the numbers appear to support Stallard’s point of view, that strong management is critical. Boeing had no immediate comment. Airbus didn’t respond to a request for comment. The issue is partly the nature of the aerospace business, which is characterized by heavy investment, high regulation, and product cycles measured in decades, making strategic choices as critical as engineering decisions. “This is the sort of business that, from a product perspective, you build on, or not, over a long period of time,” explains General Electric CEO Larry Culp.

Boeing has fallen on some hard times. Its 737 MAX jets have run into more problems while the Airbus A320 family of jets — the MAX’s competition — has extended its lead in the key single-aisle segment of the jet market. Boeing can still lay claim to market dominance in twin-aisle, wide-body jets, though. How it has maintained the lead in that segment gives clues to how it can win back share in the 737-size jet market. Over the past 15 years, Airbus has delivered just over 1,800 twin-aisle jets. Boeing has delivered almost 2,600, giving it about 58% market share. What’s more, Boeing has about 70% of the backlog for new twin-aisle jets, based on order figures reported by both companies. Things are getting better for Boeing in the wide-body market. That’s the reverse of what’s going on in the single-aisle jet market. Airbus has accounted for about 57%

By Sharon Terlep Boeing is reworking 50 undelivered 737 MAX jets after a supplier’s employee recently found misdrilled holes on some fuselages, a new production snafu for the aircraft manufacturer. Spirit AeroSystems, which has been at the center of quality issues affecting 737s, supplied the fuselages. Boeing said that the issue could delay some deliveries in the near term and that existing 737s can keep flying. “This is the only course of action given our commitment to deliver perfect airplanes every time,” Boeing’s commercial chief Stan Deal said in a memo to staff on Sunday. Boeing said it is finalizing instructions for the rework and expects to know how long it will take in coming days. Deal said the employee flagged to his manager two holes that may not have been drilled exactly to the jet maker’s requirements. Delays will allow the company to inspect and, if necessary, fix any

Boeing (BA) posted “strong” Q4 results backed by its free cash flow and “positive” commercial airplane operating margins, but the focus is now on inventory draw-down and supply chain stability, RBC Capital Markets said in a note to clients emailed Thursday. “The story for 2024 is about inventory liquidation as the FAA keeps a lid on near-term MAX production increases,” said RBC analysts Ken Herbert and Stephen Strackhouse. The investment firm kept the company’s outperform rating and cut the price target to $260 from $285. For its Q4, Boeing posted a narrower core loss of $0.47 per share from its $1.75 per-share loss a year earlier. Analysts surveyed by Capital IQ expected a core loss of $0.79 per share. Revenue for the quarter increased to $22.02 billion from $19.98 billion a year earlier. Analysts expected $21.08 billion. While Boeing has “withheld providing detailed 2024 guidance,” it indicated that the $4.4

Boeing CEO David Calhoun says that Alaska Air door-plug blowout doesn’t negate quality improvements the company has made on its 737 MAX jets since a pair of fatal crashes in 2018 and 2019. “Wasn’t the 737 line the most scrutinized product line in the word?” Bank of America analyst Ron Epstein asked Calhoun on a call to review Boeing’s financial results. “What happened to get to where we’ve gotten today?” Calhoun said quality on the 737 line has steadily progressed since the crashes and quality numbers have improved. “I think I understand your underlying context for the question but I take exception to the premise.”

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $194, down from $209, reflects a 25x multiple of projected 2025 EPS, below BA’s recent historical forward average, based on what we see as high regulatory risk. We lift our 2024 EPS estimate by $0.41 to $4.01 but cut 2025’s by $0.59 to $7.76. A Q4 operating loss per share of $0.47, vs. a loss per share of $1.75, was $0.32 better than consensus. The FAA is limiting BA, for now, to a delivery rate of 38 units per month for its flagship 737 MAX narrow-body aircraft while BA irons out process and manufacturing deficiencies. We think current consensus EPS estimates for 2024 and 2025 bake in a fairly rapid recovery in commercial aerospace deliveries, yet BA pulled forward guidance, and the Alaska