Boeing: A Lot Of Pain With Light At The End Of The Tunnel
Click Like to Follow Fliegerfaust Facebook page to get the News ASAP / Share to share this post now.
January 31, 2020 - by Daniel Jones for seekingalpha.com
- Boeing experienced a great deal of pain last year due to its 737 Max issues.
- These problems have extended into 2020 and will likely persist during at least the first half of the year.
- The balance sheet isn't as stable as management's presentation suggests, but the company should be fine long-term.
- This is a great long-term prospect, so long as 737 Max's grounding does not last too much beyond expectations.
If there is one major industrial conglomerate on the market that has been faced with an inordinate amount of pain in recent months, it would have to be Boeing (NYSE:BA). The airplane manufacturer and services provider has been slammed by the grounding of its 737 Max aircraft. For months, investors wondered what the full impact of this would be. With the release of its fourth-quarter earnings release for its 2019 fiscal year on January 29th, market participants are finally starting to get a glimpse at the damage.
Truth be told, it ain't pretty.
No matter how you stack it, the financial picture at Boeing is less than ideal. For starters, consider the revenue generated by the conglomerate during its fourth quarter last year.
According to management, this figure came out to $17.91 billion. This represents a 37% decline from the $28.34 billion the company generated the same quarter a year earlier.
The revenue figure was actually $3.85 billion lower than analysts anticipated, making this a rather substantial stumble for the firm.
As a result of this...
- Live Feed - Boeing 777X First Flight (because of the weather the first ... ›
- Video: First Boeing 777X Final Body Join - First Flight in 2019 ... ›
- Why Boeing's Problems Are Hurting Southwest Airlines (and others ... ›
- Before deadly crashes, Boeing pushed for law that undercut oversight ›