Before the markets open on Wednesday morning, Boeing Co. (NYSE: BA) will report second-quarter 2015 results. Consensus estimates call for adjusted earnings per share of $1.42 on revenues of $24.22 billion. In the second quarter last year, Boeing put up earnings per share of $2.42 on revenues of $22.04 billion.
Until Boeing can actually show that it can sell a 787 Dreamliner for more than it costs to build one, this is a key metric to watch. Production losses for the 787 program reached a total of nearly $27 billion in the first quarter.Boeing delivered 197 commercial aircraft in the second quarter, an increase of 16 compared with the same period last year. The defense, space and military division just announced issues with the KC-46A tanker that Boeing is building for the U.S. Air Force.The program has rung up about $1.2 billion in cost overruns so far, and Boeing has been forced to eat the charges on this fixed-price contract.Boeing’s new chief executive, Dennis Muilenburg, is likely to offer some encouraging words.
The final thing to watch for is cash flow. Boeing continues to say that it will meet its cash flow target of $9 billion for the full fiscal year, but cash flow from operations totaled just $88 million in the first quarter. For investors, if Boeing wobbles on its cash flow projections, that would be the worst possible news out of the quarterly report.
Boeing’s stock traded down about 1.5% , at $ 145,00 in a 52-week range of $116.32 to $158.83 and Volatility w=1.01% m=1.19%. Correlation: Aerospace/Defense Products & Services (Last change BA: -1,17%; Last change ADP&S: -2,74%).
The current consensus target price on the stock is $163.55. The other question is how is exhausted downward momentum that began after February 20.
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