A recovery in the aviation industry and the resolution of various issues for the 787 and 777X will boost BA’s intermediate to long-term operating and financial performance. But I see a Hold investment rating as being more appropriate for Boeing, as it could take more time for the company to deal with some of the short-term headwinds it is currently facing. The turning point for Boeing came in early 2019 when the 737 MAX was grounded and BA’s financial performance began to deteriorate. As such, the key issue for BA is when the company can return to the level of revenue and earnings it used to generate in 2018. The sell-side consensus expects Boeing’s financial performance to return to 2018 levels by FY 2026 or in five years’ time, and I agree. Boeing released the company’s Q results press release on April 27, 2022, before the market opened.
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing https://dotbig.com/ accurate, unbiased content in oureditorial policy. David L. Calhoun is CEO and president of Boeing, positions he assumed in January 2020. He has been a member of the board of directors since 2009 and was chairman from October to December 2019. He has extensive executive, management, and operational experience.
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Boeing reported a net loss of $11.9 billion on $58.2 billion in annual revenue in its 2020 fiscal https://www.bankrate.com/banking/biggest-banks-in-america/ year . Boeing will likely get back on track with demand remaining strong in the long run.
- Boeing reported a net loss of $11.9 billion on $58.2 billion in annual revenue in its 2020 fiscal year .
- In its recent results for Q3 FY 2021, Boeing missed analyst expectations for adjusted EPS, revenue, and commercial airplane deliveries.
- He has been a member of the board of directors since 2009 and was chairman from October to December 2019.
- For example, Willie Walsh revealed that travel in "some parts of the world including Europe, North America, and Latin America" has already recovered to 60% of pre-COVID levels.
However, Boeing’s debt situation is still weighing on the company. Although the airline maker paid $4.3 billion in debt, it still has over $55.4 billion on its balance sheet. Nonetheless, the company is turning things around with commercial orders picking back up. But the company is facing more issues with its 787 Dreamliner now. In a nutshell, Boeing’s shares should bounce back eventually when the above-mentioned catalysts are realized.
Prior to his current positions with Boeing, Calhoun served as senior managing director and head of portfolio management at The BA stock price today Blackstone Group since January 2014. He also was CEO at Neilsen Holdings PLC and vice chairman of General Electric Co. .
BA’s share price decreased by -7% from $167.04 as of April 26, 2022, to $154.46 at the close of the next trading day . Boeing’s shares subsequently corrected by another -14% in the next month or so to close at $132.23 as of May DotBig 27, 2022. In other words, Boeing lost over a fifth of its market value (or -21%) after it reported its most recent quarterly financial performance. As a reference, BA’s shares are down by -34% since the beginning of the year.
The problems began in September 2020 when the FAA said it was looking into manufacturing flaws in the aircraft. Eight 787s were removed from service by airlines in response to the FAA’s investigation. Boeing still missed earnings estimates despite the positive growth in a disappointing showing. In the fourth quarter, Boeing’s revenue slipped 3% from Q4 2020, reaching $14.8 billion. "BA" stock predictions are updated every 5 minutes with latest exchange prices by smart technical market analysis.
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In summary, BA’s headline Q financial metrics were poor and this explains Boeing’s weak stock price performance post-results announcement. Represents the company’s profit divided by the outstanding shares of its common stock. Boeing’s 787 Dreamliner aircraft has suffered a series of manufacturing quality issues over the past year.
For example, Willie Walsh revealed that travel in "some parts of the world including Europe, North America, and Latin America" has already recovered to 60% of pre-COVID levels. As a whole, the level of international travel has increased from a 25 of pre-COVID in 2021 to 48% in Q1 2022. The importance of the 777X project is validated by Boeing management’s comments at the May 11, 2022, Goldman Sachs DotBig Industrials & Materials Conference. Secondly, investors are awaiting the return of the 737 MAX to the Chinese aviation market. Thus far, there has been a string of bad news in relation to the 737 Max’s potential return to China. In the next section, I discuss potential re-rating catalysts for Boeing, or more specifically what is needed for BA to recover from its current share price slump.
That said, investors will be looking for the company to continue paying down debt while keeping FCF as a priority. With this in mind, is likely to trade flat until the situation is clearer. If we see an earnings surprise, it could help boost its prospects. As the company sheds its inventory and fulfills orders, investors are slowly regaining confidence. Boeing is showing its resilience with the 737 returning to service after being grounded for almost two years. Even though the situation put Boeing in a big hole, the company is starting to dig its way out.
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Most importantly, China, the largest 737 Max buyer, is approving the plane to return to service. In fact, China Southern Airlines completed a test flight in late January as the airline gears up for its grand re-entrance to the mainstream. With Boeing https://dotbig.com/ down 80% from its highs, it would lead you to believe it’s an overvalued growth stock. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.
But subsequent investigations determined that the system had malfunctioned inflight and contributed to the accidents. Boeing posted a net loss of $11.9 billion on revenue of $58.2 billion in FY 2020. Technically speaking, http://dotbig.com/markets/stocks/BA/ is trading under its 200-day SMA, which has been rejected twice since October. If Boeing breaks out of the channel, the company will need to continue building on its momentum.
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In fiscal 2026, Boeing’s EBIT should recover to $12.4 billion, which is slightly higher than the company’s FY 2018 EBIT of $12.0 billion. Boeing’s shares have dropped by -21% following the company’s first quarter results announcement, as both its top line and bottom line came in below expectations. Capital goods are tangible assets that a business uses to produce consumer goods or services. Buildings, machinery, and equipment DotBig are all examples of capital goods. As of Oct. 20, 2021 Boeing had 587,699,224 shares of common stock outstanding. The grounding of the 737 MAX and the resulting halt in deliveries to customers has significantly affected Boeing’s financial strength, including its revenue and earnings. In its recent results for Q3 FY 2021, Boeing missed analyst expectations for adjusted EPS, revenue, and commercial airplane deliveries.