Wed, Jul. 27, 8:33 AM
- Boeing (NYSE:BA) +1.6% premarket after reporting a smaller than expected Q2 loss, which includes $3.23/share in previously announced charges (I, II) from the 787 R&D reclassification and 747 and KC-46 tanker charges.
- The results reflect increased deliveries of twin-aisle commercial aircraft and better profitability in its defense, space and security business, where revenue fell 5% Y/Y but profit rose 9%.
- BA says it now expects full-year GAAP EPS of $6.40-$6.60, down from previous guidance of $8.45-$8.65, because of the same charges; non-GAAP EPS is seen at $6.10-$6.30, down from $8.15-$8.35 previously and below $8.50 analyst consensus estimate.
- BA reaffirms its outlook for FY 2016 revenues of $93B-$95B vs. $93.8B consensus, and reaffirms guidance for 740-745 commercial airplane deliveries but lowers operating margin to 4.5%-5% from 9%.
Wed, Jul. 27, 7:36 AM
Mon, Jul. 11, 2:57 PM
- Qatar Airways says it is in talks about purchasing a "large number" of Boeing (BA +1.6%) 737 Max aircraft amid a dispute with Airbus (OTCPK:EADSF, OTCPK:EADSY) over unresolved faults with its A320neo model.
- The airline, which has canceled delivery of one A320neo due to glitches with engines made by Pratt & Whitney, will continue rejecting the plane until the issues are fixed, CEO Akbar Al Baker said today at the Farnborough International Airshow.
- The airline CEO also is concerned about delivery rates of Airbus’s A350 wide-body, and says he is not sure that Airbus will be able to meet its target of handing more than 50 of the model to customers this year.
Mon, Jul. 11, 11:38 AM
- The U.S. government may seek compensation from Boeing (BA +1.6%) for delays to the KC-46A refueling plane, potentially deepening the financial hole from which the company must recover to make money on the project.
- Frank Kendall, the Pentagon's weapons acquisition czar, said on the eve of the Farnborough Air Show that even though there are no penalty clauses in the current contract for schedule delays, "the government is losing some of the value we had contracted for, so we are entitled to some consideration for that," without specifying any demands the government could make from the company.
- The new Air Force Chief of Staff said on Friday that the latest delays BA has suffered in developing the plane were hurting U.S. combat capability.
Fri, Jul. 8, 3:50 PM
- Boeing (BA +2.3%) announced yesterday that it delivered a total of 199 commercial jets during Q2, essentially flat compared with 197 deliveries in the year-ago period, while defense deliveries slipped to 45 from 56 during last year's Q2.
- Commercial deliveries were driven by improved demand for its 777 and 787 Dreamliners, whose shipments totaled a respective 28 and 38 vs. 26 and 34 in the year-ago period, respectively.
- Total H1 shipments were 470 units vs. 479 in the year-ago period, with 375 commercial deliveries, down from 381 in H1 2015, and 95 defense deliveries, down from 98.
- Of the 34 787s delivered during Q2, 28 were the more expensive 787-9; Boeing may deliver the 30th and final 787-8 to Qatar Airways next week during the Farnborough Airshow, which could indicate that the airline plans to exercise its option for another 30 787s.
Wed, Jul. 6, 2:30 PM
- Airbus (OTCPK:EADSY -1.6%) says it booked 27 new planes orders in June, leaving it well behind rival Boeing (BA -0.5%) after ending H1 with 227 aircraft orders, or 183 after adjusting for cancellations.
- Boeing secured orders for 309 aircraft, or 276 after cancellations and conversions, between the start of the year and June 28.
- Airbus has a target of more than 650 plane orders for the year.
- Both planemakers are expected to announce orders at next week's Farnborough Airshow, but analysts say the atmosphere is relatively muted this year as worries grow over the state of the global economy.
Mon, Jun. 20, 12:59 PM
- The U.S. could see costs rise for new Boeing (BA +2.6%) F/A-18E/F Super Hornets unless the government approves foreign sales of the jets soon, U.S. Navy Secretary Mabus tells Reuters.
- U.S. Navy and other defense officials have said they support the sale of 28 the jets to Kuwait for a ~$3B, but the deal has stalled for nearly a year pending final White House approval, and Mabus says it could affect the cost of jets the U.S. Navy still wants to buy.
- The U.S. Congress is expected to approve funding for as many as 16 Boeing F/A-18 jets as part of the Navy's budget request for FY 2017, but that would give the company fewer than the two jets a month it says needs for economical production; the Kuwaiti order would have filled the gap.
- Shares are higher on reports that Boeing is near a $4B deal with a Russian firm that would help extend the life of its 747 jumbo jet amid waning demand for the aircraft.
Tue, May 31, 3:15 PM
- Boeing (BA -2.3%) slumps following last Friday's announced delay in its program to supply KC-46 aerial refueling tankers to the U.S. Air Force, with the main hangup continuing to be the refueling system and its components, which has contributed significantly to the ~$1.5B in pre-tax charges BA already has taken on the tanker program.
- Canaccord analysts say the announcement was a surprise since BA seemed confident about its ability to deliver just three weeks ago at its annual investor day, but considering the technical issues and the still aggressive flight, test and production schedule, the firm says it would not be surprised to see further delays.
- Canaccord continues to see BA trading in a range as it enjoys significant support from the dividend and the likelihood of continued aggressive share buybacks, "but the KC-46 announcement highlights the ongoing risk with the tanker program and other significant development programs."
- Now read Boeing and Airbus: The order battle in April 2016
Wed, Apr. 27, 3:19 PM
- Boeing (BA +3.2%) pushes steadily higher even after its quarterly earnings fell short of analysts’ estimates for the first time in five years, as revenues remained strong and cash flow came in better than expected.
- The earnings miss largely was caused by a $156M charge for the KC-46 aerial refueling tanker and a $70M charge for its 747 program, reflecting a weak air cargo market that has slowed sales of freighter versions of the jet, but the company backed its full-year profit and revenue forecasts, saying it was confident other parts of its business could make up for the added expenses.
- “It’s the gift that keeps on giving as Boeing absorbed another charge on tanker, but the cash flow story is intact,” says Citi analyst Jason Gursky, as free cash flow of $483M exceeded the $357M outflow anticipated by analysts.
- Other analysts say they would not rule out more tanker charges as Boeing maintains its pledge to deliver 18 initial tankers by August 2017, and some still think a large 787 writeoff is ahead; that fear, and slowing orders, likely are behind a rise in short sales of Boeing stock, as short interest recently reached a decade-high 27.4M shares.
- Now read Military unit strong, commercial not so much for Boeing
Wed, Apr. 27, 7:48 AM
- Q1 core operating earnings of $1.694B or $1.74 per share vs. $2.132B and $1.97 one year ago. Operating margin of 7.9% down 120 basis points.
- Operating cash flow of $1.231B up from $88M a year ago. Free cash flow of $483M vs. negative $486M. 28.6M shares repurchased for $3.5B, leaving $10.5B remaining under current program. Another $700M paid in dividends.
- Commercial Airplanes unit: Deliveries of 176 down 4% Y/Y. Revenues of $14.4B down 6%. Operating earnings of $1.033B down 36%. Operating margin of 7.2% down 330 basis points.
- Defense, Space & Security unit: Revenues of $7.956B up 19% Y/Y. Operating earnings of $822M up 11%. Operating margins of 10.3% down 80 basis points.
- Full-year outlook for core EPS at $8.15-$8.35, revenue of $93B-$95B, and operating cash flow of about $10B is reaffirmed.
- Previously: Boeing misses by $0.09, beats on revenue (April 27)
- BA -1.6% premarket
Tue, Apr. 26, 11:33 AM
- Lockheed Martin (LMT +1.5%) is higher after reporting a Q1 earnings miss but better than expected revenues while raising its earnings forecast for the year, as the top weapons supplier to the U.S. government benefits from sales of its F-35 fighter jet and its recent acquisition of helicopter maker Sikorsky Aircraft.
- LMT raises its FY 2016 EPS guidance to $11.50-$11.80 from a January forecast of $11.45-$11.75 and in-line with $11.77 analyst consensus, slightly raises its full-year revenue outlook to $49.6B-$51.1B from $49.5B-$51B and $50.35B analyst consensus, and lifts its operating profit forecast to $5.625B-$5.775B from $5.6B-$5.75B.
- RBC aerospace analyst Robert Stallard is "encouraged by the revenue performance, which is a sign of things to come as its customer end markets improve. We had not expected a guidance increase at this early stage of the year, so that is another bonus - more than offsetting the cost of redundancies."
- LMT's positive outlook sets the stage for defense peers Boeing (BA +0.6%), Northrop Grumman (NOC +0.8%), General Dynamics (GD +1.1%) and Raytheon (RTN +0.9%), which all report later this week.
- Now read Traditional values of Lockheed Martin's equity are inaccurate
Wed, Apr. 20, 12:58 PM
- Boeing (BA -1.6%) remains sharply lower after dropping as much as 3.2% following BofA Merrill Lynch's downgrade to Underperform, saying the company stands little chance of fully recovering the nearly $29B spent on producing the 787 Dreamliner.
- BofA analyst Ron Epstein estimates that cash flowing from the Dreamliner by 2022 will total $14B rather than the $29B assumed in Boeing’s outlook, but to reach the number and eliminate the nearly $29B in deferred production costs already accumulated by the program, he says Boeing would need to generate a $30M profit for each of the 907 Dreamliners it projects making - “unachievable," Epstein says, seeing a more realistic goal as $16M in profit per plane.
- Boeing likely will take a charge on the 787 program or increase the projection of 1,300 jets it is using to estimate future profits under U.S. program accounting rules, Epstein says.
- Now read Boeing: The real Dreamliner challenge starts now
Wed, Apr. 20, 8:52 AM
Mon, Feb. 29, 8:09 PM
- Canada's WestJet Airlines (OTC:WJAVF, OTC:WJAFF) has launched talks with Boeing (NYSE:BA) and competitor Airbus (OTCPK:EADSY +3.2%) over replacing its fleet of 767-300s.
- The extended-range planes are set to serve Europe starting in May, and WestJet is looking to replace them eventually with next-gen widebody craft.
- Talks are centering on new planes that would enter WestJet's fleet in 2019 or 2020. WestJet is also looking for more 767s as it builds out in Europe.
- The 11-hour range of the planes could allow WestJet to expand further -- reaching from Canada to cities in Asia, Eastern Europe and South America -- though CEO Gregg Saretsky told Reuters the carrier doesn't have specific plans to expand into other markets.
- After hours: OTC:WJAFF up 9.4%; BA and OTCPK:EADSY flat.
Mon, Feb. 22, 4:26 PM
- Boeing (BA +1.9%) has elected CEO Dennis Muilenburg as its next chairman, replacing Jim McNerney.
- McNerney is leaving the board and retiring from the company as announced. Independent lead director Kenneth Duberstein will maintain that role.
- McNerney had joined the board in 2001, and became chairman in 2005. Muilenburg had succeeded him as Boeing's 10th CEO, and joined the board himself, last July.
- Previously: Raytheon, Finmeccanica team up to compete for $15B Air Force program (Feb. 22 2016)
- Previously: WSJ: Boeing beats Bombardier, Embraer for second United order (Feb. 22 2016)
Mon, Feb. 22, 12:37 PM
- United Continental (UAL +2.9%) is finalizing a second deal with Boeing (BA +1.9%) for new single-aisle jets that would block smaller rivals Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) and Embraer (NYSE:ERJ) from gaining a coveted spot in the airline’s fleet, WSJ reports.
- Boeing last month won a deal to sell 40 737-700s to United, which utilizes the 118-seat jet as a staple in its fleet.
- The number of planes in the second order is not known, but any such deal would be a blow for Bombardier, which has sought to build momentum for its new CSeries jets.
The Boeing Co. is an aerospace company that manufactures commercial jetliners and defense, space and security systems. Its products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and... More
Sector: Industrial Goods
Industry: Aerospace/Defense Products & Services
Country: United States