DiscoverGold
2 days ago
Did Buffett Scoop Up Shares of Boeing Without Us Knowing?
By: Wall St. | May 17, 2024
Boeing’s appeal to Warren Buffett is bolstered by its strong brand, quasi-monopoly status, and significant defense operations, which benefit from ongoing global conflicts and defense spending. With substantial cash reserves, Buffett may consider investing in Boeing (NYSE: BA) soon, especially as the company’s stock could stabilize or become more attractive due to potential whistleblower testimonies. The next few months are critical for assessing Boeing’s market position and potential investment opportunities.
Transcript:
Yeah. Something else people sometimes forget is that Boeing deep down is a defense company.
Right.
And there are enough wars or, you know, warlike situations in the world. So if you’re a defense contractor, the next five years could look pretty good for you.
Oh, absolutely. And, you know, there’s a constant flow of money from around the world, and you’ve seen the money that’s gone, you know, I mean, ostensibly the money for Ukraine, and it ostensibly is going right back to American arms manufacturers and defense contractors. So, yeah, absolutely.
Yeah, and as NATO moves weapons over, a lot of that weaponry has been sold to the NATO countries by U.S. manufacturers.
Right. That part of Boeing should continue to do pretty well. So let’s do this. I think if Buffett’s going to do something with Boeing, it’s probably going to be in the next few months. He’s going to wait maybe a little while, but I don’t think things are going to get worse at Boeing. They’re going to go sideways. So if he’s going to do something, I think he’ll probably do it soon. So let’s come back to this in a couple months. Let’s see where Boeing is trading. And maybe Buffett will surprise us and he will have already started to move in.
Right. Well, and we’ll see if there’s more whistleblower testimony that maybe is the final punch in the face to knock the shares down to a point where he’s willing to go in.
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DiscoverGold
1 week ago
The Boeing Company (BA) is Attracting Investor Attention
By: Zacks Investment Research | May 10, 2024
Boeing BA has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this airplane builder have returned +4.6% over the past month versus the Zacks S&P 500 composite's +0.2% change. The Zacks Aerospace - Defense industry, to which Boeing belongs, has gained 3.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Boeing is expected to post a loss of $0.51 per share, indicating a change of +37.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -2516.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of -$0.24 points to a change of +95.9% from the prior year. Over the last 30 days, this estimate has changed -159.1%.
For the next fiscal year, the consensus earnings estimate of $5.60 indicates a change of +2,434.9% from what Boeing is expected to report a year ago. Over the past month, the estimate has changed -8.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Boeing.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Boeing, the consensus sales estimate of $19.47 billion for the current quarter points to a year-over-year change of -1.4%. The $81.36 billion and $95.58 billion estimates for the current and next fiscal years indicate changes of +4.6% and +17.5%, respectively.
Last Reported Results and Surprise History
Boeing reported revenues of $16.57 billion in the last reported quarter, representing a year-over-year change of -7.5%. EPS of -$1.13 for the same period compares with -$1.27 a year ago.
Compared to the Zacks Consensus Estimate of $17.69 billion, the reported revenues represent a surprise of -6.34%. The EPS surprise was +20.98%.
Over the last four quarters, Boeing surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Boeing. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
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Jetmek_03052
1 week ago
Absolutely. My brother was a check airman for Continental before he retired. He would give Captains proficiency checks and evaluate First Officers for Captain upgrades. In the US that is. He said in his last years, he thought pilot basic airmanship was deteriorating at a rapid rate. It was due to the automation of the flight deck. Everything is figured out for pilots these days, they don't have to do much other than sit in the seat. Auro throttle, Auto Braking, Auto pressurization. EVERYTHING is done for them. And everything is fine until it breaks. The crew is supposed to be able to fly the aircraft without all that fancy "auto" stuff. They learn how to, but things so very rarely break, they forget. So in a true emergency, they lose that split-second decision-making edge. My brother said that many of the pilots he checked would choose to cancel flights, rather than go with an aircraft that a piece of equipment out - even if the MEL (Minimum Equipment List) said they could safely depart without it.
The Asian pilot crews are the worst ones. There is almost no CRM (Crew resource management). The captain is considered GOD-like and what he says goes. Most Asian first officers would sit on their hands and watch the captain corkscrew the aircraft into the ground, rather than raise some sort of alarm!
GolfFishSurf
1 week ago
Another one........
10:37 AM EDT, 05/09/2024 (MT Newswires) -- A Boeing (BA) 737 airplane carrying 85 people overran the runway on takeoff at the Dakar, Senegal, airport, causing injuries to 10 passengers, including the pilot, a statement posted on X, formerly Twitter, from Senegal's Minister of Infrastructure and Land and Air Transport, Malick NDIAYE, confirmed Thursday.
The Associated Press first reported the incident, citing the minister.
The Air Senegal flight HC301, operated by Senegal's regional airline, Transair, was bound for Bamako in Mali, and carried 79 passengers, two pilots, and four cabin crew members, the minister said. Emergency services quickly responded to evacuate passengers after receiving the alert, and necessary arrangements were made to assist the injured, before they were taken to a hotel for rest and further assistance, NDIAYE said in the statement.
Senegal's Bureau of Investigation and Analysis has initiated an investigation to determine the accident's causes.
Boeing didn't immediately respond to MT Newswires' request for comment.
Shares of Boeing were up nearly 0.5% in recent Thursday trading.
Price: 181.16, Change: +0.81, Percent Change: +0.45
Jetmek_03052
2 weeks ago
The spacecraft launch delay actually had ZERO to do with Boeing.
United Launch Alliance CEO Tory Bruno said an oxygen pressure-relief valve on the upper stage of the company’s Atlas rocket started fluttering open and close, creating a loud buzz. The valve may have exceeded its 200,000 lifetime cycles, Bruno said, which means it would have to be replaced, pushing the launch into next week.
The Atlas rocket design has been in service for decades.
Boeing makes the Starliner Capsule, which sits atop the rocket.
From Copilot:
The Atlas V rocket has been in service for over 20 years. It was first launched on August 21, 2002, successfully carrying the Eutelsat Hot Bird 6 broadcast satellite into orbit. Since then, it has played a crucial role in various missions, including interplanetary exploration. Notably, it has delivered scientific spacecraft to Mars, conducted research investigations to the Sun, the Moon, Jupiter, Asteroid Bennu, and even Pluto – all with remarkable precision! 🚀
For instance, Boeing’s Starliner spacecraft is set to make history as the first astronaut flight aboard an Atlas V rocket. This significant milestone demonstrates the rocket’s reliability and flexibility, making it a trusted choice for space missions12. As of now, there are 17 launches remaining for the Atlas V before its retirement.
gfp927z
2 weeks ago
>>> Spirit AeroSystems Whistleblower Dies After Sudden Infection
Time
by Koh Ewe
May 2, 2024
https://finance.yahoo.com/news/spirit-aerosystems-whistleblower-dies-sudden-104147528.html
Joshua Dean, a former quality auditor at Boeing supplier Spirit AeroSystems who had flagged safety concerns and alleged misconduct by the aircraft manufacturer, died Tuesday after a sudden and severe infection.
Dean is the second Boeing-linked whistleblower to have died in the last two months as the company has come under heightened scrutiny.
Dean, who was 45 and lived in Wichita, Kan., was in good health before he began to experience trouble breathing about two weeks ago and went to a hospital, according to the Seattle Times, which first reported on his death. Dean’s deterioration from that point, his aunt told the newspaper, was “brutal” and “heartbreaking.”
According to a series of public social media posts by Dean’s family, by April 21, he was in “very critical condition.” Dean tested positive for influenza B and MRSA, a difficult-to-treat bacterial infection, and developed pneumonia. He was intubated and put on dialysis as well as airlifted to another hospital to be put on an ECMO machine, a form of cardiac and respiratory life support. A CT scan showed that he had also suffered a stroke. Doctors were considering amputating his hands and feet, which had turned black from lack of oxygen.
“He is in the worst condition I have ever known or heard of. Even the hospital agrees,” Dean’s sister-in-law Kristen Dean posted on Facebook on Saturday, April 27. On Sunday night, Dean’s family posted that he was “giving up his fight” and “refusing to let them do any life saving procedures,” though his mother said she “told the doctor he doesn't know what he wants, I’m sure he wants to live, he’s afraid, scared and depressed.” According to Dean’s mother, the doctor agreed and performed a bronchoscopy, a surgical procedure to investigate the lungs and airways. Dean’s family announced that he had passed on Tuesday morning.
“His absence will be deeply felt,” his aunt posted on Facebook.
“Josh’s passing is a loss to the aviation community and the flying public,” Brian Knowles, a lawyer who represented Dean as well as the other whistleblower, John Barnett, who died in March, tells TIME. “He possessed tremendous courage to stand up for what he felt was true and right and raised quality and safety issues.”
Spirit AeroSystems, a company that was spun out of Boeing in 2005 and currently faces financial woes and an uncertain future, did not respond immediately to TIME’s request for comment but said in a statement cited by other media outlets: “Our thoughts are with Josh Dean’s family. This sudden loss is stunning news here and for his loved ones.”
Dean, who worked at Spirit since 2019 though was briefly laid off during the pandemic before returning in 2021, first raised concerns about improperly drilled bulkhead holes on some 737 Max planes at Spirit’s plant in Wichita in October 2022, according to a shareholder lawsuit that accused Spirit of concealing its production issues.
While Dean had reported the problem to several managers, the complaint alleged, the company hid it from investors for months until it became public knowledge in August 2023, when Boeing and Spirit announced a delay in plane deliveries due to the defect. According to testimonies from employees at Spirit, including Dean, workers had been instructed or pressured by supervisors to downplay the defects they found.
“It is known at Spirit that if you make too much noise and cause too much trouble, you will be moved,” Dean told the Wall Street Journal in January. “It doesn’t mean you completely disregard stuff, but they don’t want you to find everything and write it up.”
Dean was fired by Spirit in April 2023, ostensibly over a separate issue he failed to identify as an internal inspector. Months later, he filed a complaint to the Federal Aviation Administration, alleging that he was made a scapegoat while Spirit did nothing to inform regulators and the public of the concerns he had flagged.
After a high-profile incident in January in which a plug door on a Boeing 737 MAX 9 blew off during an Alaska Airlines flight, Dean’s former colleague Lance Thompson publicly backed Dean’s claims to the Seattle Times, saying that production deadlines were prioritized over safety at Spirit’s Wichita plant and that managers encouraged workers to hide defects. An audit by the FAA into Boeing and Spirit found in March that both companies failed to comply with quality-control requirements.
Dean had filed a complaint with the Department of Labor in November alleging wrongful employment termination by Spirit, a case that remained pending at the time of his death. “I think they were sending out a message to anybody else,” Dean told NPR in February: “If you are too loud, we will silence you.”
Dean’s death comes less than two months after the death of Barnett, another whistleblower who had spent years warning about lax safety standards at Boeing. Barnett was found in his truck with what authorities described as an apparent “self-inflicted gunshot wound,” in Charleston, S.C., on March 9, amid depositions he was giving related to a similar alleged retaliation dispute with Boeing. An investigation remains ongoing.
When asked about his two clients’ recent deaths, which have sparked conspiracy theories on social media, Knowles told TIME: “I do not want to speculate, and I would like to see the evidence from the investigating authorities.” But, he adds, “what society does not need is people in fear to speak up.”
Agoura Guy
2 weeks ago
A SECOND BOEING WHISTLEBLOWER IS ***DEAD***!!!!!!!!
WELL WELL WELL..........
HOW ABOUT THAT!!!!!!!!!!!!
Another whistleblower connected to Boeing has tragically passed away.
Joshua Dean, a former quality auditor at Boeing supplier Spirit AeroSystems, died early Tuesday morning after battling a sudden, rapid infection, the Seattle Times reported.
His death comes less than two months after the death of John Barnett, another whistleblower, under mysterious circumstances.
Joshua Dean, known affectionately as Josh, was a prominent figure in raising alarms over alleged safety issues within Boeing’s 737 MAX production line.
According to reports by the Seattle Times, Dean succumbed to a fast-spreading infection that led to multiple complications, ending his life at the age of 45. Dean, a resident of Wichita, Kansas—where Spirit AeroSystems is based—was previously in good health and known for his healthy lifestyle.
DiscoverGold
3 weeks ago
Boeing Stock Is Slipping. A Bull Bails Because the Turnaround Will Take Time
By: Barron's | April 30, 2024
Boeing stock caught a downgrade Tuesday. It will take a while to fix the commercial-airplane giant.
Argus analyst John Eade downgraded shares to Hold from Buy, and removed a $240 price target.
The challenges Boeing faces related to the 737 MAX, production quality, management succession, and an aerospace supply-chain struggling to ramp production will last "multiple quarters into the future" he writes. As a result, Eade is moving his rating to the sidelines.
Boeing stock is down 0.8% in premarket trading at $172.30, while S&P 500 and Nasdaq Composite futures were off about 0.1%.
Shares might not be affected by the downgrade to a greater extent because of the starting point. Coming into Tuesday's trading, Boeing stock was off about 33% year to date. Most of that drop came after an emergency door plug blew out of a 737 MAX 9 jet operated by Alaska Air Group on Jan. 5. The incident has led to slower production and more oversight by aviation regulators.
Deutsche Bank analyst Scott Deuschle tracked 19 Boeing jet deliveries from the start of April through the 28th. April is shaping up to be a slow month. Boeing delivered 83 jets in the first quarter, an average of almost 28 a month.
Slower production isn't a surprise at this point. Boeing is working to improve production quality.
Deuschle rates Boeing stock at Buy with a $225 price target. Overall, about 65% of analysts covering Boeing stock rate shares Buy, according to FactSet. That's similar to the Buy-rating ratio a year ago. The average Buy-rating ratio for shares in the S&P 500 is about 55%.
The average analyst price target for Boeing stock is about $222. A year ago, the target was about $238.
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DiscoverGold
3 weeks ago
Boeing taps debt market to raise $10 billion, sources say
By: Reuters | April 29, 2024
Boeing on Monday tapped debt markets to raise $10 billion, after the U.S. planemaker burned $3.93 billion in free cash during the first quarter following slowing production of its best-selling jet, sources familiar with the matter said.
Boeing's credit rating hovered above "junk" status last week after new action from rating agencies as the planemaker tries to recover from a crisis that began in January after a midair blowout of a cabin panel door plug on a nearly new 737 MAX 9.
Investors and analysts have said that Boeing could tap bond markets to get ahead of more than $12 billion in combined debt coming due in 2025 and 2026.
Credit rating agencies on Monday both assigned ratings nearing junk to Boeing's new senior unsecured notes, with S&P assigning a BBB- rating and Moody's assigning a Baa3 rating.
Moody's said the rating reflects Boeing's still-strong business profile, which continues to mitigate ongoing weak performance in commercial aircraft, although headwinds surrounding the division could persist through 2026.
Boeing will use the bond proceeds to increase its liquidity ahead of maturities on its existing debt load, including $4.3 billion in 2025, S&P wrote on Monday.
"It looks like it will go well," said one of the sources, who was looking at buying the bonds, adding that he was told it was eight times oversubscribed.
The deal's bookrunners leading the bond sale include Bank of America, Citi, JPMorgan and Wells Fargo, according to the deal's term sheet.
Boeing, whose shares rose 3.4%, is pricing bonds that have maturities ranging from three to 40 years, according to the term sheet. The bonds were set to price with a premium of 10-15 basis points to Boeing's outstanding bonds after, as strong demand during the sales period allowed Boeing to reduce the amount of concession offered, one banking source said.
The sharp tightening of spreads is reflective of overwhelming demand for the bonds, with order books earlier in the day said to have reached over $70 billion, two bank syndicate sources said.
Boeing declined to comment, but pointed to remarks from Chief Financial Officer Brian West during the company's earnings last week in which he said the company was committed to managing its balance sheet in a prudent manner, with the goal of prioritizing its investment-grade rating and helping the factory and supply chain to stabilize.
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DiscoverGold
3 weeks ago
Fitch downgrades Boeing's outlook to 'negative' on production, cashflow challenges
By: Reuters | April 26, 2024
Fitch Ratings downgraded outlook on Boeing BA to "negative" from "stable" on Friday, amid a fallout from safety crisis impacting the U.S. planemaker's production and cashflow.
The ratings agency, which reaffirmed its "BBB-" long-term issuer default rating, said it could stabilize the outlook if Boeing liquidates over 100 of its pre-2023 built 737 MAX and half of its 787 inventories by early 2025, along with increasing production of its MAX jets towards 38 per month.
Fitch's downgrade follows similar moves by S&P and Moody's earlier in the week on its bumpy cashflow.
Boeing has been under heavy regulatory scrutiny and lowered production of its 787 widebody jets, along with 737 MAX, after the cabin panel blew off an Alaska Airlines-operated ALK 737 MAX 9 flight mid-air, forcing an emergency landing.
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DiscoverGold
3 weeks ago
Airbus posts drop in earnings raising fears it may struggle to profit on Boeing's woes
By: MarketWatch | April 26, 2024
Airbus on Friday said an increase in its costs, caused by inflation and supply chain issues, had seen its adjusted earnings drop in the first quarter of 2024, even as sales of its aircraft increased against the backdrop of ongoing problems at its main rival Boeing.
Strong demand for new planes, driven in part by the disruption at Boeing (BA), saw the Toulouse headquartered company boost its revenue by 9%, to EUR12.8 billion, as it delivered 142 commercial aircraft to its customers.
Higher costs, however, cut into Airbus' profit margins, leading to concerns the company may struggle to capitalize on Boeing's issues. The company blamed the higher costs on a series one-off issues, alongside the impacts of supply chain problems, increased R&D costs, and wage inflation.
The drop in Airbus' margins, in turn, saw the European plane maker fall short of analysts' expectations, as it posted a 25% drop in its adjusted earnings before interest and tax (EBIT) to EUR577 million ($620 million), compared to the EUR809 million expected by eight analysts, Factset data shows.
Shares in Airbus (FR:AIR) fell 2% on Friday after gaining 25% over the previous 12 months. Airbus stock is, however, down 7% since the start of April, which RBC's analysts said was a result of investors focusing on the company's "elevated spending" on fixing ongoing supply chain issues.
Airbus, nonetheless, held its guidance for 2024, in stating it still expects to generate EUR6.5- EUR7 billion in adjusted EBIT across the full-year, even as analysts at UBS, led by Ian Douglas-Pennant, said they now expect Airbus will hit the lower end of that range.
In a call with investors, Airbus CEO Guillaume Faury said the higher first quarter costs were partly caused by over EUR100 million in "expenses linked to the Employee Share Ownership Plan" and EUR30 million from exchange rates, which he said would not be repeated.
The UBS analysts said Airbus' results were "disappointing" across all divisions and they noted EBIT "barely increased," even excluding the higher costs linked to the employee share plan and foreign exchange.
The Airbus CEO also warned that supply chain issues that have plagued the company for over a year are "not improving", saying the company is "pouring a lot of human resources" into fixing the "difficult situation."
RBC analysts, led by Ken Herbert, nonetheless, said Airbus is now well positioned to boost its earnings long-term, as they said the "strong demand environment" should still boost the company's business going forwards.
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DiscoverGold
4 weeks ago
Boeing Slows Production of Its 787 Jet. Relax, It's Not a Quality Problem
By: Barron's | April 23, 2024
Boeing is set to slow production of its twin-aisle 787 Dreamliner jets. Shares are unaffected. Investors appear to be giving the company a pass since it isn't a quality problem — and because they hear from Boeing Wednesday morning when it reports first-quarter earnings.
The production slowdown is due to a parts shortage, according to Reuters, citing an internal memo. Boeing confirmed the memo's accuracy but declined to comment further citing its quiet period ahead of quarterly earnings.
Boeing produced about five 787 jets a month in 2023. The company also ended the year with about 50 built, but undelivered jets in its inventory, a consequence of a year-long delivery pause starting in 2021 to fix quality problems.
The current slowdown doesn't appear to be related to old issues. "We continue to manage through supplier shortages on a few key parts," reads part of the memo. "To that end, we have shared with our customers that we expect a slower increase in our rate of production and deliveries."
Supply-chain issues have been relatively common since COVID-19. Boeing peer Airbus cited supply chain challenges at its annual shareholder meeting on April 10.
Boeing stock hasn't been affected by the report yet. Shares were up 0.2% in premarket trading, at $170.85 a share, while S&P 500 and Dow Jones Industrial Average futures were up 0.1%.
Coming into Tuesday's trading, Boeing shares were down about 35% year to date. Most of that drop happened after an emergency door plug blew out of a 737 MAX 9 jet operated by Alaska Air on Jan. 5. The incident has led to slower MAX production, compensation paid to airline customers, and more Federal Aviation Administration oversight.
Boeing delivered 13 787 jets in the first quarter of 2024, up from nine in the first quarter of 2023. Boeing delivered a total of 63 787 jets in 2023.
Investors will get a chance to hear from management about the 787, 737, production, quality, and other topics when Boeing reports first-quarter results on Wednesday morning.
Wall Street is looking for a per-share loss of $1.63 from sales of $16.2 billion, according to FactSet. A year ago, Boeing reported a per-share loss of $1.27 from $17.9 billion in sales.
The company hosts a conference call at 10:30 a.m. Eastern time.
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