Boeing executives confront investors

The hard times What was he going through? Boeing Company It raised many doubts among investors, who will have the opportunity this week to resolve their concerns directly with Company executives at its plant in Seattle to me Julie Johnson at Yahoo Finance.

even after Re-delivery of the 787 Dreamliner Which stopped for a long time in August, the besieged giant Keep accumulating losses. No close to resuming 737 Max deliveries to ChinaAn essential teacher to improve your money. My latest Max model You have not yet received regulatory approval.

However, it is expected to be CEO Dave Calhoun, CFO Brian West and other business leaders Provide the first important guidance early 2019when Two accidents of the 737 Max have plunged the company into crisis. Persuading Wall Street to buy Calhoun’s vision for Boeing is another matter.

“Right now, investors don’t believe them,” he said. Ron Epstein, Analyst, Bank of America. “There is a credibility crisis in the investment community that they have to overcome.”

Boeing Never miss earnings estimates Wall Street consensus From July 2016 to January 2019but only He’s met or surpassed three times since then. The aircraft manufacturer’s finances and operations were affected when The Covid pandemic has crushed aircraft sales Shortly after Calhoun took over as CEO in 2020, he recently faced Lack of motors and skilled labour.

The company’s shares have down 29% this yearcompared to 18% decline in the S&P 500. work goes to Its third consecutive year of falling. Since the end of 2019, Boeing’s market value has been More than half, to $85.7 billionslightly less than his arch-rival Airbus SE.

The company revealed last week Surprise defense cost of $2.8 billion and delivery target cut of 737. The CEO was criticized for his work Laissez-faire management approachFrustrations mounted as rival Airbus expanded its market leadership.

for him Analyst Rob Stallard of Vertical Research PartnersThe company’s problems are like a game “whac-a-mole”, With new problems arise when other problems are solved.

“Given the track record to date, particularly with additional defense fees expected, we remain concerned about any outlook provided by Boeing,” Stallard wrote to customers last week.

Boeing has not held a regular investor conference with streaming presentations from the three business chiefs since May 2016.. under Former CEO Dennis Muilenburgwho was fired for dealing with the tragedies of the 737 Max, the aircraft maker Pending investor sessions While he was dominating the Dow as an apparent financial giant with amazing free cash flow.

For many investors, the two-day event starting on November 1 will provide the first presentation of A battalion of new CEOs who have held senior positions since Boeing held its last closed meeting of the financial community five years ago.

Best Case for Boeing Executives Describe a variety of scenarios for the mid-decade“When 737 and 787 cash cow production should get back on track, while providing a healthy dose of reality about the risks,” Epstein said.

Boeing in the end Start generating cash. Epstein expects it A relatively modest cash gain of $700 million this year could rise to $12.4 billion by 2024 Whether the company can get 737 Max production back on track will control defense costs.

“The truth is that it will take some time for things to get back to normal,” Calhoun said on Boeing’s Oct. 26 earnings call. “Our goal at the upcoming investor conference is to give you this projection on how and when we think this is likely to happen.”

Boeing surprised the market last week by revealing that Your defense business won’t make any money this year or the nexteven as rising defense budgets pay off other military contractors.

but for Robert Spengarn, Analyst at Melius ResearchThe real shock was the revelation that Boeing It only builds about 21 or 22 of the 737 planes every month, about a third less than what analysts formulated. Investors are expected to be concerned about this discrepancy between production and delivery rates ahead of Boeing’s November 2 filings.

“They quietly and awkwardly moved the goalpost into the low twenties,” Spingarn said of the monthly production of the 737 in an October 28 interview. “This is one of the main focus points for the coming week.”

Boeing Company The last session of the month closed at $143.84 and the 70-period moving average remained above the last candles.