If some are wondering why the stock price is falling on an earnings beat, well the answer is that even though earnings did beat estimates for the quarter, they did suffer a significant drop in free cash flow.
Negatives:
-Higher than expected costs for the 787 Dreamliner program, which are "continuing to rise".
-Business class seats made by Zodiac Airspace slowed deliver to BA customers.
-Boeing Q1 was dealt with "supply-chain" disruptions due to West Coast ports labor disputes.
-Free cash flow fell to $-486M from last years positive $615M Free Cash Flow.
Positives:
-Company projects costs for 787 program will "top out" later this year. Analysts concur.
-Factories for twin & single aisle aircraft experiencing higher production rates above the historical norm.
-Boeing reiterates plan to hand over 750-755 jetliners in 2015 / up from 723 in 2014.
-Chairman/CEO Jim McNerny expects Boeing's "seat issue" to be handled within the upcoming months, and does not expect it to disrupt production plans.
-BA reported profit $1.34B / $1.87 p/share up from $965M / $1.28 p/share in 2014.
-Core op. earnings increased to $1.97, previously $1.76
-Free cash flow full year outlook maintained positive.
-Bought back 17M shares in the quarter for $2.5B. CFO Greg Smith announced plans to spend the remaining $9.5B in their stock buyback plan over the next two to three years.
I can continue going on and on about the positive outlook for the company that I have, but at the moment I'm just looking for a short term swing trade down to 137.50-137.00 on a break below support, to where I will buy back into the stock on a long entry signal. If support does hold than I will consider buying the stock at support with targets of 151.00 and 157.50. Cheers =)
Negatives:
-Higher than expected costs for the 787 Dreamliner program, which are "continuing to rise".
-Business class seats made by Zodiac Airspace slowed deliver to BA customers.
-Boeing Q1 was dealt with "supply-chain" disruptions due to West Coast ports labor disputes.
-Free cash flow fell to $-486M from last years positive $615M Free Cash Flow.
Positives:
-Company projects costs for 787 program will "top out" later this year. Analysts concur.
-Factories for twin & single aisle aircraft experiencing higher production rates above the historical norm.
-Boeing reiterates plan to hand over 750-755 jetliners in 2015 / up from 723 in 2014.
-Chairman/CEO Jim McNerny expects Boeing's "seat issue" to be handled within the upcoming months, and does not expect it to disrupt production plans.
-BA reported profit $1.34B / $1.87 p/share up from $965M / $1.28 p/share in 2014.
-Core op. earnings increased to $1.97, previously $1.76
-Free cash flow full year outlook maintained positive.
-Bought back 17M shares in the quarter for $2.5B. CFO Greg Smith announced plans to spend the remaining $9.5B in their stock buyback plan over the next two to three years.
I can continue going on and on about the positive outlook for the company that I have, but at the moment I'm just looking for a short term swing trade down to 137.50-137.00 on a break below support, to where I will buy back into the stock on a long entry signal. If support does hold than I will consider buying the stock at support with targets of 151.00 and 157.50. Cheers =)