Thursday October 28, 2021, 06:39:47

The Boeing Company (BA): Looking For The Calm After The Storm; Earnings Recap

By Chris D. Olin

The lack of surprises offered yesterday morning could be characterized as a net-positive for The Boeing Company (BA) as the near-term earnings risk seems to be minimal while the longer-term view seems to be holding, if not improving. Outside of the supply chain risk, headlines should start improving for the company. Continue reading

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Friday October 22, 2021, 12:40:53

The Boeing Company (BA): Lowering Estimates Ahead Of Quarterly Update On Revised BCA Segment Outlook

By Chris D. Olin

We lowered estimates to better align with weaker-than-expected aircraft deliveries, increased 787 program cost assumptions, and indirect headwinds tied to COVID-19. As mentioned in a note issued earlier this week, we believe investors should prepare for a kitchen-sink quarter, with management potentially resetting delivery, operating margin, and FCF expectations. In conjunction with an increasingly cautious near-term outlook, we reduced the twelve-month target price to $250/share. Continue reading

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Saturday August 21, 2021, 10:05:00

The Boeing Company (BA): Updated Scenario Analysis Based On Existing Commercial Aircraft Production Schedules

By Chris D. Olin

We updated The Boeing Company (BA) model to align with expected commercial aircraft deliveries and future production changes. Revised assumptions for the BCA segment resulted in a slightly lower earnings outlook for this year and CY22, with the primary negatives related to the 737 and 787 aircraft programs. Downward adjustments aside, we still believe the BA shares are attractively valued today, especially after completing our EPS upside analysis. Bottom-line, the core portfolio earnings power strengthens considerably (and the FCF generation) if the company can realize those aggressive aircraft production targets embedded in the latest schedules shared with the global supply chain. Continue reading

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