What analysts expect from Boeing Q2
When aerospace giant Boeing Co. (NYSE: BA) reports second-quarter earnings before the markets open Wednesday, the company is expected to post a net loss per share of $0.92. That compares with earnings per share of $1.62 in the second quarter of 2015. Revenues are tagged at $24.04 billion, compared with year-ago revenues of $24.54 billion. The loss is due to last week’s announcement of $3.23 per share in charges against three of the company’s aircraft programs: $847 million ($1.33 per share) for two unsold 787 Dreamliner test planes that will now be written down to R&D expense and lower deferred production costs by less than 3%; $814 million ($1.28 per share) to reflect lower estimated total 747-8 freighter production; and $393 million ($0.62 per share) for development costs on the KC-46A U.S. Air Force tanker programme.
Boeing delivered 199 commercial jets in the second quarter of 2016, essentially flat compared with 197 deliveries in the same period last year. This year’s total includes 127 737s, 28 777s, and 38 787 Dreamliners. Second-quarter deliveries also include two 747s and four 767s, compared with last year’s totals of five 747s and four 767s. Boeing delivered a total of 762 commercial planes in 2015.
Barclays analysts said that the quest for a clean quarter continues. The bank’s analysts rate the stock Overweight with a $155 target price and made this comment: “We expected a Q2 charge from BA on the tanker program delays associated with recent hardware changes, which frankly we saw taking away the potential for the type of clean beat/raise quarter that we grew accustomed to before the last year and a half.”
The analysts go on to say that they did not expect the charges to the 747 and 787