June 23, 2017

Boeing outlook brightens after earnings jump

27 January 2017, 12:54 | Candice Butler

Boeing outlook brightens after earnings jump

Boeing outlook brightens after earnings jump

Boeing (BA) beat fourth-quarter earnings and revenue forecasts Wednesday but gave cautious 2017 guidance. Most significantly, the stock is off to a marvellous start this year and now trades at its new record all-time high. Jet fuel prices spiked twice in the past decade, creating a rush for more fuel-efficient planes. Solid backlogs and high delivery rates can be attributed to its mostly bullish trend.

The plane maker reached the crossover point previous year where unit costs for the cutting-edge jetliner finally fell below its sales price. To recoup those losses, Boeing will need to drive its cash profit margin for 787 deliveries much higher in the next few years. Canada's Bombardier and Russian Federation and China are in various stages of delivering similar-sized, single-aisle jetliners.

Highlights for the quarter included the delivery of the 500th 787 Dreamliner, the start of final assembly for the first 787-10 aircraft, and a rush in orders for the 737 MAX. The company now runs a backlog of more than 5,700 aircraft with a sticker value of $416 billion, although airlines routinely get discounts. Boeing took another write-down on a key tanker program that has been plagued by design issues including problems with the refueling boom.

Looking forward, our team is intent on accelerating productivity and program execution to deliver increasing cash and profitability from our large and diverse order backlog of almost $500bn, standing up our new integrated services business, and capturing an even greater share of the the growing global aerospace market to deliver superior value to our customers, shareholders and employees. Muilenburg announced after the meeting that Boeing would lower prices on the Air Force One upgrade and committed to investing in manufacturing in the U.S. "I think the direct engagement and open dialogue is very healthy".

Ecclestone replaced by Liberty, loses control of F1
He added: "My days in the office will be getting quieter now". "I doubt it", he said. This role is now occupied by (new F1 chairman) Chase (Carey of Liberty Media ).

Jeff Windau, an analyst for Edward Jones, said there could be a push and pull under Trump — more defense spending but also pressure to cut prices. Zacks Investment Research downgraded shares of Boeing Company (The) from a hold rating to a sell rating in a report on Tuesday, January 10th. On the other hand, the company's revenue came in at $23.29 billion, exceeding the consensus estimates by $100 million. Gilman Hill Asset Management LLC now owns 2,440 shares of the company's stock worth $427,000 after buying an additional 8 shares during the period.

That surpassed Wall Street expectations. That's just below the average analyst estimate for $9.31, according to Thomson Reuters. Defense, space and security revenues came in at $6.9 billion, roughly ten percent below the prior year's level.

Boeing's full-year earnings dropped year over year in 2016 following the minimized costs, even excluding the effect of several one-time charges the company incurred.

Boeing projected operating cash flow at $10.75 billion in 2017, which would exceed 2016's record mark of $10.5 billion.

Other News

Trending Now

Collapse of Tehran high-rise on fire kills 30 firefighters
The Plasco tower is located on the busy Jomhoori Avenue and was built in 1962 and named after a plastics manufacturing company. The cause of the fire was not clear. "We had repeatedly warned the building managers about the lack of safety of the building.

Tesla Just Rolled Out its Autopilot Update to All HW2 Cars
At long last - Tesla's Enhanced Autopilot update is finally active, that is, if you have self-driving capability in your auto . Automatic high beam headlights: Turns the high beams on and off automatically.

Italy avalanche: first 10 survivors found
With 15 GDF rescuers and firefighters digging, the survivors could hear their efforts and knew help was on its way, Bini said. The 300-metre wide snow slide uprooted trees and wiped out parts of the four-storey hotel, trapping dozens of people.

Cervical cancer mortality higher that previously thought
Interestingly, a subset of eight cervical cancers were mostly HPV-negative and had molecular similarities to endometrial cancers . Human papilloma virus (HPV) is known to be the most common sexually transmitted infection in the America.

Existing home sales close 2016 as best year in a decade
In spite of the decline at the end of year, 2016 has been the best sales year since 2006, noted TD Economics in a research report. The recent drop in home sales comes after a three month increase, so experts aren't too concerned about the latest numbers.

Jurgen Klopp: What Liverpool have to do after hard moments
For us it is still absolutely important to finish the season as good as possible whatever it means and then we will see.

African Nations Cup: Ghana have score to settle against Egypt
We came out to win from the off", said the Argentine. "We want to improve in every game we play", he said. Stay tuned for Egypt vs Ghana match results of AFCON 2017 and other updates.

Australian Open: Federer revival faces Nishikori test
The Swiss ace emerged victorious 6-7 (4-7), 6-4, 6-1, 4-6, 6-3 in the match, which lasted for three hours and 23 minutes. This is the 49th grand slam in which Federer has reached the last eight, while Zverev's quarter-final will be his first.

Huge ALIEN BREAKTHROUGH as mysterious WOLF 1061c planet investigated
Although unlikely, the team said this could cause the planet to cool off to the point living organisms could survive. But fully understanding what's happening on the planet's surface will take more research, he added.

Judge denies bond for suspect on Orlando police shooting charges
Debra Clayton on Thursday, bringing the number of charges he faces in connection with the crimes to 10. Loyd was hiding out at an abandoned house in Orlando when he was captured Tuesday, police said.