Boeing Stock Climbs on CEO Appointment Despite Earnings MissOverview
Dow Jones aerospace giant Boeing (NYSE: NYSE:BA ) experienced an unexpected stock rise after appointing a new CEO, despite missing estimates for its second-quarter results. Here’s a comprehensive analysis of Boeing’s recent performance, the challenges it faces, and what the future holds under its new leadership.
Q2 Earnings Report: A Disappointing Performance
Boeing's second-quarter financial results revealed a deepening loss, reporting an adjusted loss of $2.90 per share. This was significantly wider than the FactSet analysts' expected loss of $1.90 per share and a marked increase from the $0.82 per share loss in the same period last year. The company's total revenue fell by 15% to $16.87 billion, missing the estimated $17.35 billion.
Commercial Airplane Segment Struggles
The commercial airplane segment faced severe challenges, with revenue plummeting 32% to $6 billion, driven by a corresponding 32% drop in deliveries. Boeing delivered 92 airplanes during the quarter, maintaining a robust backlog of over 5,400 planes valued at $437 billion. Despite the backlog, the immediate decline in deliveries and revenue underscores the operational difficulties Boeing is grappling with.
Efforts to Improve Safety and Quality
In response to a series of mechanical issues earlier this year, Boeing submitted a comprehensive safety and quality plan to the Federal Aviation Administration (FAA). Current CEO Dave Calhoun emphasized the company’s commitment to enhancing its quality management system, stating, "While we have more work ahead, the steps we're taking will help stabilize our operations."
Production Outlook
Boeing ( NYSE:BA ) plans to increase production of its 737 aircraft to 38 planes per month by the end of the year and boost 787 production to five planes per month. These production increases are crucial for Boeing as it aims to recover from recent setbacks and meet growing market demand.
Performance in Other Segments
Boeing's defense, space, and security revenue saw a slight decline of 2% to $6.02 billion. However, the global services segment reported a 3% increase in revenue to $4.89 billion. Despite these mixed results, Boeing's diversified portfolio provides a buffer against the challenges faced in the commercial airplane segment.
Free Cash Flow and Financial Health
A major concern for investors is Boeing’s free cash flow, which was negative $4.3 billion for the quarter, compared to a positive $2.6 billion in the same quarter last year. Managing cash flow effectively will be critical for Boeing as it balances investment in production and innovation with financial stability.
Strategic Acquisition
In early July, Boeing announced a strategic acquisition, agreeing to buy supplier Spirit AeroSystems (NYSE: NYSE:SPR ) for $4.7 billion. This deal, expected to close in mid-2025, aims to enhance Boeing’s supply chain capabilities and support its long-term growth strategy.
Leadership Change: A New CEO
A significant development for Boeing is the appointment of Robert K. "Kelly" Ortberg as the company’s new president and CEO, effective August 8. Ortberg, 64, brings over 35 years of leadership experience in the aerospace industry. He previously led Rockwell Collins, overseeing its integration with United Technologies and later with RTX Corporation.
Ortberg will succeed Dave Calhoun, who announced his plans to retire earlier this year. Calhoun has been with Boeing since 2009 and has served as CEO since January 2020, navigating the company through significant challenges, including the 737 Max crisis and the impacts of the COVID-19 pandemic.
Market Reaction
Despite the disappointing earnings report, Boeing ( NYSE:BA ) stock climbed 1.5% early Wednesday on the news of Ortberg’s appointment. The stock has rebounded from its late April lows but remains down more than 28% in 2024, making it one of the worst-performing stocks on the Dow Jones Industrial Average.
The stock currently has a Relative Strength Index (RSI) of 55.31, which suggests that there is a significant potential for strong growth in the near future. This particular figure is especially notable given that the stock has recently demonstrated a falling wedge pattern, a formation that is generally recognized as indicative of impending bullish reversals in the price trend.
This pattern is often interpreted as a precursor to an upward movement in stock prices. As a result, market participants are beginning to anticipate a decisive move toward the pivotal $217 point. Such a movement is expected to further reinforce Boeing's existing rising wedge formation, which aligns with the notion of a bullish shift in the stock's trajectory. Consequently, this anticipated behavior is likely to bolster investor confidence and enthusiasm surrounding the stock, as it suggests a positive turnaround and an upward momentum in its future performance.
Challenges Ahead
Ortberg will face several significant challenges as he steps into his new role. Boeing ( NYSE:BA ) is dealing with persistent financial losses, increased regulatory scrutiny, and a crisis of confidence from airline customers facing delivery delays. Additionally, the company is engaged in tense labor negotiations, with the threat of a strike looming.
Conclusion
Boeing’s Q2 earnings report highlighted ongoing operational and financial challenges. However, the appointment of Kelly Ortberg as CEO brings renewed optimism for the company's future. With his extensive experience and proven leadership in the aerospace industry, Ortberg is well-positioned to steer Boeing through its current difficulties and towards a more stable and prosperous future.
As Boeing ( NYSE:BA ) works to enhance its safety and quality systems, ramp up production, and navigate regulatory and financial hurdles, investors will be closely watching to see if these efforts translate into a sustainable recovery and long-term growth. With a strong backlog, strategic acquisitions, and a focus on operational excellence, Boeing aims to regain its footing and reaffirm its position as a leader in the aerospace industry.
Boeinglong
BA- Buy the recovery? or take partial profits? LONGBoeing had a near disastrous start to 2024 with a Malaysian part falling off a MAX jet at 36,000.
Incidentally, going viral is that an iPhone survived the plunge fully functional. 20% got
shaved off the market cap. I bought the low with calls at $215 expiring March 15'24. They did
80% for the week and 16% today. News catalysts are that an East Indian airline company placed
a contract for the purchase of 100 jets of uncertain model. Delta Airlines also did not pull their
existing contract. These catalysts have allowed price to recover about 1/3 of the plunge. The
15-minute chart demonstrates the super trend reversal better than the 60 minute which is
shown here on the idea. The relative volume indicator is about 3 X the running mean showing
trader interest uptick. BA could short squeeze where short sellers quickly buy to cover &
capture profit while the synergistic rise is compounded by near buyers coming in to get ahead
of the chasing? The caution is that the POC line on the intermediate
term volume profile is $ 210 and so getting contracts extended above that has increased
risk based on price distance from the POC. The uptrend instead of a true recovery could be
simply a correction in the overall downtrend. I will take some of the week's profit off
the table and keep a close watch on the price action.
Is BA accumulating for an another leg higher ? LONGOn this 120 minute chart of BA where price is a blue line I have superimposed a RSI from the 4H
time frame. Each is on its own scale RSI is 0-100 while BA is the actual price level. This set
up detects divergences to forecast near-future price action. One the chart text box comments
serve to explain this a bit more. Basically if price is flat and RSI is rising divergence is there.
Likewise if RSI is falling and price is sideways there is bearish divergence. It follows that when
the RSI line is above price and price is rising, if the slope of RSI exceeds the slope of price,
that is a bullish bias. If price is falling and is above the RSI which is falling faster that is
a bearish bias. At this time, I believe that institutions are making small ( for them )
incremental buys trying not to move price until they get their quota. Price is currently
below the mean VWAP anchored into the distant past. Most buying and volatity will occur
at that price. I want to get in early. I will buy call options above current price near to
the VWAP so striking $210. So far BA has been very good to me actually a cash cow because
of the strategy used. I have two contracts at $220 for July. If things go well with this
trade, I will use the profits to buy a contract for expiration in September and spread the
risk over more time as a risk-off strategy. A stock share long trade is good from here for an
investor but the price ranging is not enough for your average trader. Fundamentally BA has
had plenty of good news and bad news. I focus on the good news. The new contracts to buy
coming out of India and Thailand point to future earnings stability something that suggests
the time to trade is now.
40 % chance with BOEING Hello dear readers,
Boeing is currently in a stable uptrend. I would like to go long on the next wave.
- I hope for a correction that pushes the price into the buy zone so that I can build up a position here.
- The trend channel should not be broken with the closing price so that the idea behind the trade remains valid.
- The subsequent expected long movement should drive the price into the sell zone, where I would then like to reduce my position again.
The expected profit on this trade is around 40%. Now we have to wait and see whether the correction sets in soon. If this is not the case, the idea is invalid.
If you want to support me: Like & Follow 🙏
Best wishes & success!
Chartdigger
Boeing Taking Off?!? ✈️Swing Idea: Boeing NYSE:BA broke out of the Daily descending channel and has consolidated into a flag pattern. Nice volume accumulation during this past week with a strong candle on Friday.
Plan : If SPY turns green this next week I like BA for a swing over $220 with initial PT of $240. Watching 3/19 $240 Calls (3.10/3.25).
I will only look to enter BA if the market looks stronger. BA can be a tricky swing due to its constant news reactions but it reacted positively this past Friday (2/19) with hopeful outlook on easing COVID restrictions. Airbus CEO also called for a "cease-fire" in regards to trans-atlantic trade tariffs on airplane subsidies. If there is + news in regards to the airplane trade tariffs I expect BA to move on that news.
Volume: BA trades with an avg volume of 11.28 million over the last 30 days. Would love to see >15 million volume and a bullish close to signify some momentum coming into BA.
LVN: If we break over $220 I'm going to be watching the LVN at $223-230 to see if we accelerate through the resistance at $227 or fail to break above. Not a bad spot to take some profits if you're in the swings in case BA retraces from $227.
*I am expecting this to be a slower developer unless news is released. So, keep an eye on the news cycle regarding trade, COVID, and airline/travel.
*I am also a long term holder of BA shares
BOEING PREPARING TO DUMP? OCT TABOEING is down over 50% from it's highs back at the start of the year. Will BA have enough strength to hold through or will it lead the market down another hole...
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The stock currently sits above what has proven to be strong support @ $153 but before we play this one we need confirmation.
Watching the orange trend line as support/resistance, it holds strong on the weekly timeframe.
Possible long on a break and hold of resistance @ $190.
Upside targets: $234
Possible Short Entry pn break and hold below $153
Caution needed with this stock as it continues its push up. Seems like it's due for a correction in a few months.
DotcomJack | Michael Jordan of Stonks
Boeing Holding Channel For Now.I am mainly focused on the 3day for a boeing entry.
We currently on the daily have some nice support holding up price on the current channel.
I am allowing it some more time to develop on the 3day timeframe to see how the candle and the ema dots play out. As of now I have no indication to buy 3day.
Neutral.
Boeing Needs To Hold Here... Or It Will Get Ugly!Ever since I got rid of this long back on june 8th for a 58% gain, it has only collapsed.
Now I'm interested in boeing now that we have some major structures to play with since the correction from the lows.
Now we can identify major levels of trends for support and Resistance to play for our next entry.
You can play both sides of the market for boeing at this 158$ price area as it is testing a major level of upward support for an aggressive play.
Keep in mind that the larger timeframes like the 3 day continue to bleed out red on all indicators.
Personally if I was going to attack long here I'd scale in with a small position. I'm more in favor of letting it play out some more and see how it reacts based off the indicators. Keep in mind that the dow is also under pressure currently which we could factor into the market overall.
It will all come down to Monday market open to see how the orders stack up.
Have You Been Buying Boeing? (BA)Overall the trend has been in retracement territory as all indicators continue to shoot red with the compression of dojis starting to pull.
I've been bearish on boeing and I have no interest in creating a long position as of now.
For now... I sold the top.
Wait for confirmation.
BOEING $BA - LONG TERM SWING TRADE BOEING BREAK OUT!
Boeing holds support near the 50MA and 100MA on the @1D TF and broke through of the violet resistance trend-line (see chart).
From there I think a new impulse wave will start (wave V).
Bearish momentum seems to be exhausted on several time-frames and there is significant bullish momentum on the 1M TF!
At the 1D TF I can see a bullish crossover on the Stochastics RSI, on the Wave Trend Oscillator and soon we will see a bullish crossover on the MACD too.
On the Squeeze Momentum Indicator I can see a W-pattern which is a bullish signal too!
I recommend to place TP orders below the 200MA near the 0.618 Fib retracement.
BA long position (swing trade, R:R=1.65):
Entry 1 $176.15 (R:R=1.65 @ entry#1)
Entry 2 $145.15
Tp.1 $218.8
Tp.2 $249.9
Sl $129.8
The Boeing Company is an aerospace company.
The Company's segments include Commercial Airplanes; Defense, Space & Security (BDS), such as Boeing Military Aircraft ( BMA ), Network & Space Systems (N&SS) and Global Services & Support (GS&S), and Boeing Capital ( BCC ).
Boeing recently received a $916 million deal to support International Space Station (Boeing-NASA project) for next 4 years.
Read more at:
economictimes.indiatimes.com
I´m not a financial adviser. For educational purpose only!
🤔 Be Careful Fanboys! (BA)💰 LET'S GET INTO SOME BOEING ANALYSIS!💰
1️⃣ First off SMASH that LIKE BUTTON & Give us a FOLLOW for DAILY ANALYSIS! ❤❤❤
- We have been aware that the uptrend has been broken! Old news!
- The 3day begins to shift red but not all ema dots below have found their alignment just yet.
- Like I said on the dow. This week close will be crucial for the market. Let it close.
Best of luck to you and all of your trades this week! 🤜
Drop your charts and comments down below, share with us what you think is going on in the markets! ❤❤❤
Thanks for checking out our analysis! ✌😁✌
🥇MLT | MAJOR LEAGUE TRADER
🐻 Bears Attack Boeing! (BA)💰 LET'S GET INTO SOME BOEING ANALYSIS!💰
1️⃣ First off SMASH that LIKE BUTTON & Give us a FOLLOW for DAILY ANALYSIS! ❤❤❤
(Overall Market Sentiment) 🐻 Bearish
- We want to take in consideration that the overall longterm support is now broken.
- We have a red engulfing candle below our average to validate further confirmation of the Crossover strategy.
- All 3 ema dots align and have for the most part been red in recent history.
- I think we will selloff and go to test 176.47 as our next structural support.
Thanks for checking out our analysis! ✌😁✌
🥇MLT | MAJOR LEAGUE TRADER
💰 +$761.50 Boeing & Emini (BA | ES)🥇Day 3 of scalping the markets for 5/5 100% winners! 💰💰💰
I think I'm really starting to fall in love with scalping the markets. I have always been a longterm swing trader and mainly focused on cryptocurrency. I believe that every market has it's own story and operates in it's own way. Cryptocurrency is a completely different market that never sleeps and has it's own way of how to trade that market specifically.
What I've been focusing on is sticking to my long term swings for crypto but now scalping the emini. I even scalped boeing today on a potential breakout that I was watching from pre market.
Boeing I did $136.50 scalp with 150 shares.
Emini I did $625 with 5 contracts.
Total = $761.50
Scalping leads to a total return of $8261.50 this week / excluding fees.
I will show you how I played the emini today down below and I will post results to my twitter. 😁👍❤❤❤
Happy trading! 💰
🥇MLT | MAJOR LEAGUE TRADER