About The Boeing Stock Fundamental Analysis
Boeing earnings are having evaporated as 737 Max deliveries and products that are on hold while the coronavirus crushes air travel. Investors should be looking at the aerospace giant’s fundamentals and the BA stock chart. The Dow Jones aerospace giant has laid out how it is planning to go into survival mode with thousands of layoffs, deep cuts to aircraft production, billions of dollars in new liquidity and cash preservation measures like an indefinite halt to dividend payments and stock buybacks.
Boeing Stock Fundamental Analysis
Ø Boeing (NYSE BA at https://www.webull.com/quote/nyse-ba) earnings-per-share growth has averaged 0% over the past three years, according to IBD Stock Checkup. In the first quarter is starting per-share loss of $1.70 vs. a gain of $3.16 a share a year ago.
Ø Revenue has contracted by 6% on average over the past three years. In Q1, the top line fell 26% to $16.91 billion, as 737 Max deliveries remained halted. Commercial airplane unit revenue fell 48% to $6.2 billion as deliveries plunged 66% to 50 aircraft.
Ø Operating cash flow was negative $4.3 billion in Q1. Cash and equivalents swelled to $15.5 billion from $10 billion in Q4, while debt grew to $38.9 billion from $27.3 billion.
Ø Boeing’s defense and space business is also facing negative news. The KC-46 tanker for the U.S. Air Force is more than two years behind schedule and has cost Boeing $4.6 billion in charges for cost overruns following an $827 million pretax charge in Q1.
Ø Boeing NYSE BA is also producing the F/A-18 Super Hornet for the U.S. Navy and foreign militaries. But in the latest budget request, the Navy wants to cut short the purchase of upgraded Super Hornets and shift the money to its own Next Generation Air Dominance platform and other key aviation investments for margin stock.
Ø However, the Air Force’s 2020 budget includes eight updated Boeing F-15eX fighters, and its fiscal year 2021 budget request includes orders for 12.
Ø The company’s space business also suffered a setback Dec. 20 when its Starliner capsule failed to reach the proper orbit for docking with the International Space Station. The company also took a $410 million pretax Q4 charge related to the Starliner space capsule and announced it April it would redo the uncrewed test.
Ø In February, NASA revealed that a previously undisclosed software issue was discovered during the Starliner’s flight that could have destroyed the space capsule. A NASA inspector general report also flagged continued delays in Boeing’s Space Launch System rocket.