Boeing (BAThe company () offered a free cash outlook far beyond Wall Street’s estimates Wednesday at its investor day. delivering a surprise loss for the third quarterLast week. BA stock shot up, regaining a crucial level.
X
Boeing management informed investors Wednesday that it expects to generate $1.5-$2 Billion in free cash flow (FCF). Wall Street had expected FCF of $670.3 Million for the whole year. As 737 and 787 delivery ramp up, it expects FCF to reach $3 billion-$5billion in 2023. Boeing expects to generate $10 billion in normalized cash flow by 2025 and $100 billion in revenues by 2025.
Boeing’s FCF reached $13.6 billion in 2018 at its peak. Then came three years of cash burn and myriad other challenges.
Boeing also predicted that 800 commercial deliveries would be made by 2025-2026. This was driven by 787 and 737 jets. Boeing’s top-selling 737 Max returned to service in December 2020Worldwide groundings followed two fatal flights. After manufacturing issues, deliveries of its 787 aircraft were resumed last quarter. Boeing announced earlier this month that it has delivered 277 737 jets and 9 787 aircraft units in the year to date.
On Oct. 26, the Dow Jones defence and aviation giant said that it continued to anticipate a return to positive free cash flowThis year. After Boeing earnings fell and debts mounted, the management uses free cash flow to evaluate business performance and overall liquidity.
Wall Street analysts project a net loss for the entire year at $6.39 per share. After four years of losses, analysts expect Boeing annual earnings to rebound in 2023.
Many investors wanted to know the production and delivery targets for Boeing’s top-selling 787 and 737 Max jets. This is what drives Boeing earnings and free cash flow.
IBD Live: A New Tool For Daily Stock Market Analysis
BA Stock
Boeing shares rose 4.1%, to 149.29, on the stock market todayThe sliding 50-day line was retaken by. BA stock plunged nearly 9% after the Q3 earnings miss. Boeing stock is now back at the Oct. 26 highs.
BA stock has a bottoming basis with a 173.95 buy point.
Boeing Outlook
Boeing was impacted by the collapse in business and commercial air travel during the pandemic. It also had to deal with several setbacks that affected key programs such as the 787 and737 jets.
Despite supply disruptions and fears of recession, the company continues to work towards a turnaround.
“While many investors focus on what Boeing’s guide is, we are looking to find much more,” Ronald Epstein, BofA Global Research analyst, wrote in a note Tuesday to clients.
Analyst added that “if we are to ever see anything even close to BA’s peak valuation again,” meaningful change must be implemented across the company. We are interested in how BA seeks to change culture while managing investments, supply woes and inflation. Epstein gave Boeing stock a neutral rating with a $165 price target.
OTHERS MAY LIKE:
Warren Buffett Stocks: What’s Inside Berkshire Hathaway’s Portfolio?
Here Are The 5 Best Dow Jones Stocks So Far This Year
These Are The 5 Best Stocks To Buy And Watch Now
Source link
[Denial of responsibility! smye-holland.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – at smye-holland.com The content will be deleted within 24 hours.]
