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The Boeing Company (BA)

  • Dec. 10, 2014, 12:30 PM
    • Airbus (OTCPK:EADSF -9.3%) says it is likely to further cut production of its A330 long-range jet and that it faces a delay in delivering the first A350 jetliner to Qatar Airways.
    • Airbus earlier this year announced plans to cut production next year of the A330 to nine aircraft per month from 10 amid weakening demand, and CEO Tom Enders told investors today that output will fall further in 2016.
    • Even as Airbus confirmed its earnings targets for the year, CFO Harald Wilhelm said inventory levels would rise next year amid the production ramp up for the new A350 jet and that cash flow could be negative.
    • Despite bulging order books that stretch out to the end of the decade, Airbus and Boeing (BA -2.3%) have struggled to sell some plane types; Boeing said yesterday it would cut output of its 747 jumbo that has been selling poorly.
    | Dec. 10, 2014, 12:30 PM | 5 Comments
  • Nov. 20, 2014, 10:51 AM
    • Boeing (BA +0.2%) is back in the green after announcing an order from Kuwait Airways for 10 widebody 777-300ER passenger aircraft. The deal has a value of $3.3B at list price.
    • The aircraft maker opened lower this morning after it lost a bid to rival Airbus to replace Delta's aging fleet.
    | Nov. 20, 2014, 10:51 AM | 1 Comment
  • Oct. 31, 2014, 8:44 AM
    • Boeing (NYSE:BA) and Monarch Airlines have finalized a previous order for 30 737 MAX 8s, marking the beginning of the British carrier's transition to an all-Boeing single-aisle fleet.
    • The order is worth more than $3.2B at current list prices, and includes options for 15 additional 737 MAX 8s.
    • The 737 MAX has accumulated 2,325 orders to date and is the fastest selling airplane in Boeing history.
    • BA +0.8% premarket
    | Oct. 31, 2014, 8:44 AM | Comment!
  • Oct. 22, 2014, 2:13 PM
    • Boeing (BA -4.3%) has been sliding steadily despite beating Q3 earnings expectations, as investors focus on disappointing cash flow results, a metric it had said was one of the most important to watch for growth in the next few years.
    • "The lack of cash in 3Q and only a modest change to the operating cash guidance for the year are likely to disappoint," overshadowing strong operating performance in the divisions, RBC Capital analyst Robert Stallard says.
    • Analysts on Boeing's earnings conference call also expressed concern that the company’s planned production increases across its jet programs would delay a ramp-up in shareholder payments.
    • Boeing also said accumulated losses on the 787 program broke through the $25B barrier during Q3, a mark it had said it expected to hit next year and suggesting reducing costs on the program is taking longer than expected.
    | Oct. 22, 2014, 2:13 PM | 2 Comments
  • Oct. 22, 2014, 7:31 AM
    • Boeing (NYSE:BA): Q3 EPS of $2.14 beats by $0.16.
    • Revenue of $23.8B (+7.5% Y/Y) beats by $780M.
    • Shares +3% PM.
    • Press Release
    | Oct. 22, 2014, 7:31 AM | 11 Comments
  • Sep. 8, 2014, 2:31 PM
    • Boeing (BA +2.7%) shares could climb 20% over the next year to $150, Barron's believes, as growing demand for flights, especially in emerging markets, combined with fuel-efficiency gains and cheap financing, should keep earnings moving steadily higher and free cash flow soaring.
    • Boeing's modest cancellation rate plus an order backlog equal to nearly five years' worth of revenue provides excellent visibility into near-term demand; Boeing predicts global air traffic will rise 5%/year over the next two decades as middle classes expand in emerging markets, creating a need for the global airline fleet to expand from 21K planes now to 42K by 2033.
    • Shares look affordable too, at 14.8x projected earnings for the next four quarters, a 8% discount to where they have traded over the past 15 years and a 6% discount to the S&P 500 vs. a historical 4% premium.
    | Sep. 8, 2014, 2:31 PM | Comment!
  • Sep. 2, 2014, 12:21 PM
    • Boeing (BA -1.5%) shares slip after a pair of analyst downgrades, including an Underperform rating from Buckingham Research which Reuters says marks the first such rating for Boeing's stock since 2009 when the company was suffering from delays in bringing its 787 Dreamliner to market.
    • Buckingham also cuts its price target for Boeing to $101, well below the current price of ~$125, believing that lower 777 production rates and higher deferred production costs on the 787 will have a negative impact on results.
    • RBC also cuts its price target to $134 from $145, saying investor sentiment toward Boeing and Airbus is likely to remain muted due to concern over the visual headwind of declining orders and increased cancellations, despite record backlogs.
    | Sep. 2, 2014, 12:21 PM | 5 Comments
  • Aug. 14, 2014, 12:12 PM
    • Boeing (BA +1.9%) will announce plans this fall to increase production of its single-aisle 737 jet in response to pressure from customers, CFO Greg Smith tells an investor conference.
    • Smith says Boeing had boosted production rates across all airplane programs 17 times over the past four years, and still had another three to go, including one on its 737.
    • Boeing has raised 737 production to 42/month at its Renton, Wash., factory, a rate that is scheduled to rise to 47/month in 2017 with the potential for a further boost to 52 in 2018 or 2019.
    • Also, Boeing says it received 10 new orders for 777s from an "unidentified customer" in the latest week.
    | Aug. 14, 2014, 12:12 PM | 5 Comments
  • Jul. 23, 2014, 12:25 PM
    • Boeing (BA -2.5%) is pushing down the Dow Jones average despite reporting strong Q2 earnings and raising full-year guidance, as investors focus on a $425M charge involving the company’s KC-46A military tanker program.
    • "It is worrying that Boeing is booking a charge of this magnitude at a relatively early stage in this long-term program, particularly given recent assurances from management that everything was going to plan," RBC analyst Robert Stallard writes.
    • The problem could conjure up scary visions of Boeing’s 787 commercial airliner program, which was bogged down by delays for several years.
    • In today's earnings conference call, CEO Jim McNerney said the charge reflected wiring problems, and sought to ease investor concerns about delivering on the commercial jet order book, noting that requests to defer jet deliveries remained below their historical average.
    • Another area of some concern was cash flow from operations, which came in at $1.81B in Q2, below the $1.94B analysts had forecast.
    | Jul. 23, 2014, 12:25 PM | 9 Comments
  • Jul. 23, 2014, 7:31 AM
    • Boeing (NYSE:BA): Q2 EPS of $2.42 beats by $0.43.
    • Revenue of $22.05B (+1.1% Y/Y) misses by $420M.
    • Shares +1.7% PM.
    • Press Release
    | Jul. 23, 2014, 7:31 AM | 3 Comments
  • Jul. 14, 2014, 3:15 PM
    • Boeing (BA +1.2%) is poised to win orders from two jet-leasing companies for narrow- and wide-body planes valued at as much as $9.2B, with the deals announced at the Farnborough Air Show possibly as soon as tomorrow, Bloomberg reports.
    • Air Lease (AL +2.4%) reportedly may buy 20 of Boeing’s 737 Max single-aisle jet and six 777 wide-bodies, while BOC Aviation may commit to at least 50 of the Max jets.
    • Even so, Airbus (EADSF, EADSY) grabbed more than $21B in firm orders and sales deals on the opening day of the Farnborough forum, nearly triple the tally for Boeing.
    | Jul. 14, 2014, 3:15 PM | 4 Comments
  • Jun. 11, 2014, 11:39 AM
    • Boeing (BA -2.3%) is easily the Dow's biggest decliner today following two pieces of bad news - one specific to Boeing, the other to the airline industry.
    • RBC downgraded BA shares to Sector Perform from Outperform, believing most of the good news already is out and reflected in the stock; Boeing "has become an execution/cash deployment vs. an upside to growth story, and this is likely to cap any multiple expansion from here," RBC writes.
    • Also, today's surprise cancellation of an Airbus (EADSF -2.9%) order raises questions over new aircraft demand, whether for the Airbus A350 or a more general wobble of confidence in a previously solid market that could also hit Boeing.
    | Jun. 11, 2014, 11:39 AM | 11 Comments
  • May 5, 2014, 2:55 PM
    • Boeing (BA +1.7%) says it is "very close" to signing a contract with the U.S. Navy on a multibillion-dollar contract for 47 more F/A-18 fighter jets and EA-18G electronic attack planes.
    • Boeing's program manager for both fighter jets says the contract would include 11 F/A-18 Super Hornets funded in FY 2013, 21 EA-18G Growlers funded in FY 2014, 12 Growlers for Australia and three additional EA-18G planes included in a legal settlement with the U.S. government.
    • BA gives no details on the total value of the contract.
    | May 5, 2014, 2:55 PM | Comment!
  • Apr. 28, 2014, 2:55 PM
    • Boeing (BA -1.9%) reportedly has lined up Japanese companies, including Mitsubishi Heavy Industries (MHVYF) and Kawasaki Heavy Industries, to build ~20% of its new 777X plane, retaining Japan as its key Asian partner in commercial jetliners.
    • Japanese companies would obtain a share of the work on the new plane that is on par with the 21% of the 777 aircraft they have been making for two decades, but because Boeing plans eventually to build more planes per month, there should be a greater volume of work for the Japanese suppliers.
    • For Japanese suppliers, the high watermark for Boeing work so far is the 787 Dreamliner, with 35% of the carbon composite aircraft, including the wings, built in Japanese factories.
    | Apr. 28, 2014, 2:55 PM | 1 Comment
  • Apr. 23, 2014, 2:38 PM
    • Investors are breathing a sigh of relief at Boeing's (BA +2%) strong cash flow generation of $615M for Q1, above the $545M forecast by RBC Capital; concerns had been growing that BA's free cash flow might be hit by a build-up of inventory of 787 planes following production snags at its South Carolina assembly plant.
    • RBC also takes heart in Boeing's aggressive stock buybacks - $2.5B during the quarter - while share prices were soft; the results should provide comfort that the company’s 2014 cash guidance may prove as conservative as its cautious EPS guidance.
    • An 18% rise in passenger jet deliveries was a pleasant surprise, and the nearly 20% rise in revenues at the commercial airplane division to $12.7B, with operating margins rising to 11.8% from 11.4%, were solid showings; commercial order backlog totaled $374B, including 235 net new orders during the quarter.
    • In today's earnings call, CEO James McNerney said the company sees no softening of demand for its commercial airplanes; "in fact, underpinning the strength of the cycle relative to past ones is a sustained high level of replacement demand."
    | Apr. 23, 2014, 2:38 PM | 2 Comments
  • Apr. 7, 2014, 2:14 PM
    • Boeing (BA -1.5%) says it plans to end production of its C-17 cargo jets in mid-2015, some three months earlier than its initial estimate for late 2015, and shutter its 1.1M sq. ft. Long Beach, Calif., facility due to "current market trends and the timing of expected orders.”
    • BA expects to post Q1 charges of $50M related to the move.
    | Apr. 7, 2014, 2:14 PM | 2 Comments
Company Description
Boeing Co, together with its subsidiaries designs, develops, manufactures, sells and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services.