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The Boeing Company (BA)

  • Fri, Sep. 25, 10:58 AM
    • Aerojet Rocketdyne (AJRD -1.5%) is considering raising its $2B offer for United Launch Alliance, a rocket launch venture of Boeing (BA +0.4%) and Lockheed Martin (LMT -0.3%), but faces big hurdles after a rejection of the bid last week, Reuters reports.
    • AJRD faces an uphill climb given growing tensions between the two companies over the past few years, according to the report; earlier this week, ULA dumped AJRD as its solid rocket motor supplier and signed a long-term deal with its rival Orbital ATK (OA -0.5%).
    • An AJRD takeover of ULA also would require Russia to give its regulatory approval and transfer a technology license for use of the Russian RD-180 engine that powers ULA's Atlas V rocket, the report says.
    • Analysts have questioned how AJRD could raise the money for the deal, and even whether is worth $2B given the changing space market.
    | Fri, Sep. 25, 10:58 AM | 1 Comment
  • Tue, Sep. 22, 2:19 PM
    • Boeing (BA -2%) CEO Dennis Muilenburg says he sees scope for additional 737 work going to China, but stops short of discussing specifics of the company's proposed 737 finishing facility in China, a step expected to be announced during Chinese President Xi Jinping's visit to Seattle this week.
    • Boeing's plan to set up a facility in China that would paint, finish and deliver 737 jetliners built at its factory near Seattle has provoked the International Association of Machinists union, but Muilenburg says the company has operated in China for 42 years and is continuing to invest "in a way that allows us to grow jobs around the world."
    • Boeing "cannot compete unless we have a global-scale, global diversification strategy, a strategy that accounts for collaboration in all parts of the world," the CEO says.
    | Tue, Sep. 22, 2:19 PM | 15 Comments
  • Tue, Sep. 22, 10:41 AM
    • India's cabinet approves the purchase of Boeing (BA -2.1%) Apache and Chinook helicopters in a deal worth ~$2.5B, just days before Prime Minister Modi is scheduled to arrive in the U.S. to promote investments in India.
    • The long-delayed final approval demonstrates India’s efforts to deepen ties with the U.S. and modernize its military; negotiations on the helicopters ended months ago, but budget constraints held up the deal.
    • The approval for 22 Apache attack and 15 heavy lift Chinook helicopters, with options to buy an additional 11 Apache and seven Chinook helicopters, is intended to replace the military's aging Soviet-origin choppers.
    | Tue, Sep. 22, 10:41 AM | 4 Comments
  • Mon, Aug. 24, 6:40 PM
    • Boeing (NYSE:BA) is off 0.9% after hours, adding to today's 3.4% decline, after telling workers today it expects to cut "several hundred" jobs in its satellite unit through the end of this year, Reuters reports.
    • The company said some of those people could find work in other parts of Boeing. The cuts come amid delayed commercial orders -- caused by launch vehicle failures, as well as uncertainty around the Export-Import Bank, which can't write new loans and trade guarantees with an expired charter.
    • Satellite provider ABS canceled a large contract with Boeing related to the Ex-Im uncertainty, and began active discussions with other satellite makers with access to government trade credits.
    • Previously: Boeing should rebound despite emerging markets swoon, J.P. Morgan says (Aug. 24 2015)
    | Mon, Aug. 24, 6:40 PM | 8 Comments
  • Mon, Aug. 24, 2:58 PM
    • Boeing (BA -3.4%) and Spirit AeroSystems (SPR -2.8%) should rebound despite concerns over emerging market demand, J.P. Morgan analysts say, expecting aircraft production to increase even with growing concerns about demand from emerging markets.
    • While noting macro factors such as lower GDP growth and the risk of a recession, the firm attributes its confidence in the aerospace sector to large OEMs, diverse backlogs, solid traffic growth and fewer cancellations.
    • "Since China is at the center of today’s worries, we have looked closely at the backlog, concluding that order levels are reasonable and leading airlines should take their planes barring a very hard landing. If the cycle holds as we expect, aero stocks should rebound," the firm writes.
    | Mon, Aug. 24, 2:58 PM | 3 Comments
  • Wed, Aug. 12, 2:24 PM
    • Boeing (BA -1.7%) says it continues to see strong global demand for civilian aircraft and pressure to increase production rates, despite concerns about slowing growth in China.
    • Airlines from many countries are buying significant numbers of planes to replace old aircraft, providing "more confidence in this cycle," CFO Greg Smith tells a Jefferies investment conference as he addresses concerns by some investors that the cycle has peaked.
    • Cutting production costs on the 787 Dreamliner is a top priority, Smith says, noting "a lot of work to do" as the company has not met its own expectations in cutting 787 costs and has ~1,100 cost-cutting projects it is evaluating with a special team.
    • Smith also predicts cash flow would continue to rise as the company reduces losses on the 787, but does not offer a new forecast; Boeing lost ~$23M on every 787 it delivered in during Q2 but expects the plane to turn cash-flow positive by year-end.
    | Wed, Aug. 12, 2:24 PM | 1 Comment
  • Wed, Aug. 12, 9:53 AM
    • Boeing (BA -2%) forecasts that India will need 1,740 new airplanes valued at $240B in the next two decades, as more of the country's middle class takes to air travel.
    • More than 80% of India's demand is expected to be for single-aisle planes such as the Boeing 737 and Airbus 320, says the senior VP of sales for Asia Pacific and India for Boeing's commercial airplanes.
    • The new forecast is rosier than projections Boeing made last year, when it estimated Indian demand at 1,600 new airplanes worth $205B over 20 years.
    | Wed, Aug. 12, 9:53 AM | 7 Comments
  • Wed, Jul. 29, 2:58 PM
    • Boeing (BA +1.9%) Chairman Jim McNerney says the company is actively considering moving "key pieces" to other countries in light of the future of the Export-Import Bank, and that he is more worried than ever that the U.S. Congress could fail to reauthorize the bank, whose charter expired on June 30.
    • "We are now forced to think about this differently," McNerney said in an interview hosted by the Economic Club of Washington, adding that Boeing may move some operations to countries that did offer export credits.
    • A congressional standoff over U.S. transportation funding deepened earlier this week when the second-ranking House Republican said he would reject the Senate's $350B multi-year road and mass transit bill, which would have reauthorized the Ex-Im Bank.
    | Wed, Jul. 29, 2:58 PM | 35 Comments
  • Wed, Jul. 22, 7:58 AM
    • Core operating earnings of $1.7B, or $1.62 per share vs. $1.99B, or $2.42 per share in the same quarter a year ago.
    • Revenues by segment: Commercial Airplanes +18%; Military Aircraft -1%; Network & Space Systems +1%; Global Services & Support -8%.
    • Commercial Airplanes booked 171 net orders during the quarter. Total backlog at quarter-end was a $489B, down from $495B at the beginning of the period, and included net orders of $18B.
    • The company repurchased 14M shares during Q2 for $2B, leaving $7.5B remaining under the current repurchase authorization.
    • Core earnings per share guidance for 2015 has now been adjusted to between $7.70-$7.90 per share, from $8.20-$8.40, to reflect the impact of the KC-46 Tanker charge. Revenue for 2015 is still expected to be $94.5B-$96.5B.
    • BA +1.3% premarket
    • Q2 results
    | Wed, Jul. 22, 7:58 AM | Comment!
  • Mon, Jun. 29, 3:28 PM
    • Boeing (BA -2.5%) is one of the Dow's biggest losers on a day when all 30 components are down, as it becomes clear the U.S. government will not back export sales of its aircraft after the Export-Import Bank sunsets on June 30.
    • By late Friday it became clear there would be no vote on the renewal of the Ex-Im charter before Congress goes into its Fourth of July recess, which starts Monday, as the measure is opposed mostly by conservative Republicans who view the bank as corporate welfare.
    • The Ex-Im often is called “the Boeing bank,” because more than half its transactions are for Boeing aircraft; its loss, if maintained, could affect the company’s ability to compete against Airbus (OTCPK:EADSF, OTCPK:EADSY).
    | Mon, Jun. 29, 3:28 PM | 60 Comments
  • Wed, Apr. 22, 2:41 PM
    • Boeing (BA -1.8%) is lower despite reporting better than expected Q1 earnings, and RBC analyst Robert Stallard says it's all about the cash flow.
    • Stallard says BA has been touting improved cash flow as the 787 moves from a loss to a profit on a cash basis, but Q1 saw BA print a cash outflow of $486M vs. an inflow of $615M in the year-ago quarter; the cash flow statement shows a $1.8B inventory build and a swing in advances and billings in excess of costs to -$400K from +$1.1B, which suggests that some of the cash from advances was pulled forward into Q4 of last year.
    • "Boeing is perhaps learning the hard way that if you tell investors to focus on the cash flow, then you had better deliver it," Stallard writes, adding that the slow start to the year for cash means the company "has a lot to do to meet or beat its full year cash flow target."
    • But Citigroup's Jason Gursky thinks today's weakness signals a buying opportunity, noting that cash flow likely was weak on timing and the 2015 outlook remains unchanged.
    | Wed, Apr. 22, 2:41 PM | 2 Comments
  • Wed, Apr. 22, 7:44 AM
    • Q1 core operating earnings of $2.132B or $1.97 per share vs. $2.095B and $1.76 one year ago. Core operating margin of 9.6% down 60 basis points. Operating cash flow of $88M vs. $1.112B a year ago.
    • Commercial Airplanes operating earnings of $1.617B up 8% Y/Y, with operating margin of 10.5% down 130 basis points. Deliveries of 184 vs. 161. Revenues of $15.381B up 21%. 110 net orders booked during Q, with backlogs of more than 5.7K planes valued at $435B.
    • Defense, Space & Security operating earnings of $743M down 4% Y/Y on revenue of $6.709B down 12%. Operating margin of 11.1% up 90 basis points.
    • 2015 guidance is reaffirmed: Core EPS of $8.20-$8.40, operating cash flow above $9B, Commercial Airplane deliveries of 750-755 with operating margin of 9.5-10%, Defense, Space & Security revenue of $29.5B-$30.5B with operating margin of 9.75-10%.
    • Q1 Performance Review
    • Previously: Boeing beats by $0.16, misses on revenue (April 22)
    • BA flat premarket
    | Wed, Apr. 22, 7:44 AM | Comment!
  • Mon, Feb. 23, 10:33 AM
    • Goldman Sachs is making waves on Wall Street in early trade after downgrading the Aerospace sector to Neutral from Attractive. While the firm still views Aerospace as a long-term growth industry, it says that downside risk has been heightened after substantial outperformance.
    • As part of the sector view change, Goldman also downgraded Boeing (BA -2.7%) to Sell from Neutral and Precision Castparts (PCP -2.6%) to Neutral from Buy.
    • Boeing: "With a sustained lower fuel price and pockets of global growth volatility, the demand equation for aircraft could worsen, and Boeing shares are highly correlated to new aircraft orders. New aircraft supply has now doubled from the trough, and growth rates should slow." Goldman also cited concerns over large increases in deferred production of 787 jets and a potentially "less comfortable" medium-term free cash framework.
    • Precision Castparts: "PCP...has now grown organically at a slower pace than the supply chain average for 11 of the last 12 quarters, which could continue for at least the next few given its Oil & Gas exposure and no visibility into the end of engine destocking." Goldman also added that the company's inventory growth and lack of converting 100% of net income to free cash are "concerning."
    | Mon, Feb. 23, 10:33 AM | 26 Comments
  • Fri, Feb. 20, 12:23 PM
    • Boeing (BA +2.9%) reaches new all-time highs as Sterne Agee analysts raise their stock target price to $196 from $164, believing that the company’s healthy visibility and robust backlog will continue to make the stock "a must own in 2015."
    • Sterne Agee estimates Boeing will generate $23B in free cash flow during the 2015-17 period, with ~$16B available for buybacks after dividends, which would enable a 15% reduction in the shares outstanding; it forecasts Boeing will generate free cash flow of $6.3B in 2015, $8B in 2016 and $8.7B in 2017, resulting in a 15% compound average growth rate.
    • The firm's $196 price target is the highest issued by any analyst.
    | Fri, Feb. 20, 12:23 PM | 14 Comments
  • Thu, Jan. 29, 2:41 PM
    • Boeing (BA +5.6%) posts its second straight strong advance, powering to new record highs in the afterglow of its surprising Q4 results and 2015 guidance.
    • Canaccord is one of several firms raising its stock price targets; reiterating its Buy rating, the firm lifts its target to $160 on strong cash flow guidance which it believes overshadow concerns about risks such as crude pricing, foreign exchange, airline orders and the 777 order bridge.
    • Deutsche Bank also cited the impressive cash flow in raising its price target to a Street-high $175 (
    | Thu, Jan. 29, 2:41 PM | 4 Comments
  • Wed, Jan. 28, 3:49 PM
    • The U.S. Air Force says it has selected Boeing's (BA +5.7%) commercial 747-8 airliner to replace its current fleet of Air Force One presidential aircraft.
    • Boeing has not secured a contract, but the Pentagon says it likely would win deals for the aircraft and modifications that include sophisticated communications equipment and antimissile devices.
    • The Sikorsky unit of United Technologies (UTX -1.7%) and Lockheed Martin (LMT -0.5%) win a $1.24B contract to build the first six of a planned fleet of 23 helicopters for the Marine Corps to transport the president, vice president, cabinet members and other dignitaries.
    | Wed, Jan. 28, 3:49 PM | 9 Comments
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Company Description
Boeing Co, together with its subsidiariesdesigns, develops, manufactures, sells and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services.