Boeing

The following is a summary of the The Boeing Company (BA) Q4 2023 Earnings Call Transcript: Financial Performance: Boeing’s Q4 revenue was $22 billion, up 10% year-over-year, driven by higher commercial volume and favorable mix. The company reported a core loss per share of $0.47, improved from the previous year due to better commercial volume, better mix, and lower abnormal costs. Free cash flow for the quarter was $3 billion, consistent with the prior year, primarily due to improved commercial deliveries and strong order activity. Boeing Commercial Airplanes booked 611 net orders, resulting in an inventory backlog valued at $441 billion, generating revenue of $10.5 billion, up 13%. Business Progress: Boeing is addressing safety issues that led to the grounding of its 737 MAX 9 planes and is working with the NTSB and FAA during the ongoing investigation. Several steps to enhance quality control measures have been implemented, such as […]

Boeing Q4 2023 Adj EPS $(0.47) Beats $(0.78) Estimate, Sales $22.02B Beat $21.10B Estimate.

Boeing Says 737 Program Continues To Deliver Airplanes And Its Production Rate Is Now At 38 Per Month; Says 787 Program Production Rate Is Now At Five Per Month.

Boeing (BA) reported a Q4 core loss Wednesday of $0.47 per share, narrower than its $1.75 core loss per share a year earlier. Analysts surveyed by Capital IQ expected a core loss of $0.79 per share. Revenue for the quarter ended Dec. 31 was $22.02 billion, up from $19.98 billion a year earlier. Analysts polled by Capital IQ expected $21.08 billion. The company gave no financial forecast for 2024, saying it is focusing on “taking comprehensive actions to strengthen quality at Boeing” amid scrutiny surrounding the Alaska Airlines blowout. Earlier in January, a fuselage plug on an emergency exit of a Boeing 737 MAX 9 came off mid-air, forcing an emergency landing. “As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders,” said Chief Executive Dave Calhoun.

By Tomi Kilgore Strength in closely watched commercial airlines business helped push revenue well above expectations Boeing Co. assuaged investors’ fears for the moment on Wednesday, as the aerospace and defense giant’s fourth-quarter results beat Wall Street expectations in all of the key metrics, amid strength in the closely watched commercial-airplanes business. But a sense of uncertainty remained, as the company did not provide guidance for 2024 in the earnings release or in the investor presentation presented on the website. The post-earnings conference call with analysts starts at 10:30 a.m. Eastern. The stock (BA) bounced 3.4% in morning trading. It had closed Tuesday at the lowest price since Nov. 10, after tumbling 19.5% since the in-flight blowout of a panel on a Boeing 737 Max 9 plane led to groundings of aircraft. “The full ramifications of the latest MAX safety issues have yet to be felt, and we see it

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 of $209, cut $29, reflects a 25x multiple on our ’25 EPS estimate, well below BA’s three-year historical forward average of 40x, but merited, in our view, by what we see as rising regulatory risk. We widen our expected ’23 loss per share by $0.42 to -$5.75, trim our ’24 EPS estimate by $0.50 to $3.60, and trim ’25’s EPS view by $0.45 to $8.35. The WSJ has reported that the Boeing MAX-9 plug-type door at the center of the recent controversy was likely re-installed by BA without necessary bolts, and that there were lapses in process documentation. Meanwhile, BA has now withdrawn a previously-requested safety exemption for the yet-to-be-certified MAX-7. We believe this withdrawal reflects a “read the room” moment by BA

The 737 MAX jet, production quality, new regulatory oversight, the commercial aerospace recovery, new jet approvals, and defense- business profit margins are all areas of interest. All that means it should be interesting when Boeing reports its fourth-quarter numbers on Wednesday morning. For the quarter, Wall Street is looking for a per-share loss of about 76 cents from sales of $21.1 billion, according to Bloomberg. A year ago, Boeing lost $1.75 a share from about $20 billion in sales. Boeing’s commercial airplane business continues to lose money as it continues to recover from the COVID-19 pandemic and the worldwide MAX grounding that lasted from March 2019 to November 2020. Boeing delivered 157 aircraft in the fourth quarter, including 107 MAX jets, compared with 152 jets, including 107 MAXes, in the fourth quarter of 2022. For the full year, Boeing delivered 528 planes, including 387 MAX jets, up from 480 planes,

BofA Securities analyst Ronald J. Epstein hosted Chris Brady, author of The Boeing 737 Technical Guide, to discuss the Federal Aviation Administration’s (FAA) mandatory production freeze of Boeing Co’s (NYSE:BA) 737 MAX aircraft and the possible implications for MAX 7 and MAX 10 certification process. As per the analyst, Brady praised the FAA’s decision to freeze production rates and noted that an alternative (such as slowing down rates) could have been much worse for Boeing. The analyst is cautious about the probability of the MAX 7 and 10 aircraft being allowed Time Limit Exceptions (TLE) due to scrutiny related to the door plug incident of Alaska Air Group Inc (NYSE:ALK). Brady says that, before that incident, the FAA would have granted the TLE to Boeing. The analyst notes that Boeing has given June 2026 as a reasonable timeframe for fixing the anti-ice system. The analyst further adds that if certification is delayed until then, Boeing may face the risk

The 737 MAX 9 is back in service, about three weeks after the Federal Aviation Administration grounded the jet following the midair blowout of an emergency door plug on an Alaska Air flight. Three weeks doesn’t sound so bad, but the damage done to Boeing shares can’t be measured by the relatively short delay in airline service and aircraft deliveries. The 737 MAX 9 door plug incident has added a lot more uncertainty for investors. Investors hate uncertainty. Saturday, United Airlines Flight 1525 from Newark to Las Vegas departed at 10:30 a.m. local time and was the first United passenger flight on a Boeing MAX 9. Alaska Air completed the first flight of a MAX 9 post-grounding on Jan. 26. The three-week delay shouldn’t impact Boeing’s 2024 aircraft deliveries, or production all that much. The compensation paid to airline customers who lost out on sales by having part of their

Boeing — BA-NYSE Neutral — Price $214.13 on Jan. 25 by BofA Global Research In the wake of the Alaska Airlines Flight 1282 incident, where a 737 MAX-9 door plug was ejected from the fuselage in midflight, Boeing has again found itself in the spotlight of materially increased regulatory scrutiny. The subsequent grounding and Federal Aviation Administration mandated production rate freeze at current levels will likely prevent Boeing from reaching its 2025-26 production, delivery, and free-cash-flow goals outlined during its 2022 investor day. We expect the FAA ruling to delay Boeing’s 737 ramp by roughly a year. We move to the sidelines with our rating on the shares, lowering it to Neutral from Buy and cutting our price objective to $225 from $255.

Aerospace supplier Hexcel says it’s yet to hear of any changes to the master production schedule for 737 output, but pledged not to be a bottleneck for planned rises at Boeing or Airbus. Still, the prospect of curtailed MAX output weighed on some suppliers, with Hexcel, Spirit AeroSystems and Montana Aerospace all shedding around 8%, and ATI down 5%. Boeing closed down almost 6%, pegging its market value decline since the Alaska Airlines incident around $30 billion.

Boeing (NYSE:BA) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/25/2024 8.04% B of A Securities $255 → $225 Downgrades Buy → Neutral 01/18/2024 33.97% Susquehanna $306 → $279 Maintains Positive 01/16/2024 8.04% Wells Fargo $280 → $225 Downgrades Overweight → Equal-Weight 12/15/2023 51.26% UBS $275 → $315 Maintains Buy 12/12/2023 — William Blair Initiates Coverage On → Outperform 12/06/2023 12.85% Barclays $210 → $235 Maintains Equal-Weight 12/01/2023 27.25% Stifel → $265 Initiates Coverage On → Buy 11/28/2023 32.05% RBC Capital $200 → $275 Upgrades Sector Perform → Outperform 11/20/2023 29.65% Deutsche Bank → $270 Upgrades Hold → Buy 11/01/2023 — Goldman Sachs Maintains Buy 10/31/2023 4.2% Northcoast Research → $217 Upgrades Neutral → Buy 10/26/2023 -3.96% RBC Capital $210 → $200 Maintains Sector Perform 10/26/2023 30.13% Citigroup $285 → $271 Maintains Buy 10/26/2023 5.64% Morgan Stanley $235 → $220 Maintains Equal-Weight