The Boeing Company ($BA) Stock | Company Gaps Down On Weak 2016 Guidance Numbers

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The Boeing Company (NYSE: BA)

 

 

The Boeing Company (BA), an aerospace company, yesterday reported their 2015 fourth quarter financial results and provided guidance for 2016. Boeing’s 2015 fourth quarter earning numbers did beat analyst expectations, but their weak 2016 guidance numbers are cause for concern. BA reported fourth quarter earnings per share of $1.60 which beat analyst expectations of $1.28 per share. BA reported revenue numbers of $23.6 billion which dropped 4%, but were higher than analyst expectations of $23.5 billion. Now for the disappointing guidance numbers BA expects 2016 earning per share to be in between $8.15 and $8.35 which fell short of analyst expectations of $9.43 per share. BA expects 2016 revenue to be in between $93 to $95 billion, which fell short of analyst expectations of $97.1 billion.

 

The Boeing Company CEO’s Comments

“Building on our foundation of solid core operating performance and customer focus, Boeing extended its leadership of the aerospace industry in 2015 with record deliveries and revenues in commercial airplanes, and solid sales and healthy margins in our defense and space business. We also generated significant cash flow to fuel investments in innovation and our people, and provide compelling returns to our shareholders,” said Boeing President and Chief Executive Officer Dennis Muilenburg.  “With clear strategies and strong positions in our markets, a large and diverse order backlog worth nearly $500 billion, and multiple additional production rate increases planned yet this decade, we are well positioned for profitable growth and higher cash flow as we move into our second century in business.”

“Our priorities for 2016 and beyond are to build on our existing strengths to deliver on current plans and commitments, and to stretch beyond them by accelerating progress on key enterprise growth and productivity initiatives, investing in our team, and creating more value and opportunity for our customers, shareholders and employees,” Muilenburg said.  PR Newswire

 

BA Technical Analysis

BA Chart

BA gapped down in price yesterday to $119.69, down from the prior day’s close of $128.01, which is a 6% decrease in price. Taking a look at the daily chart we can see that the last time BA traded below this price level was on August 24th when it traded at its 52 week low of $115.14. Taking a closer look at the daily chart we can see that BA has been on a steep decline dating back to December 29th when it traded at $147.35, equivalent to a 19% drop in price. BA has a float of 669.43 million shares and is trading over 4 times the normal daily trading volume. BA did reach pre market lows of $119.15, but bounced back $0.54 at the open. For trading purposes, my entry short would have been $119.5 looking for a drop down to $117. My stop loss would have been $119.80, fearing anything above that and the stock would start to fill in the gap down.

 

Company Profile

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements, as well as provides related support services to the commercial airline industry. This segment also offers aviation services support, aircraft modifications, spares, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment is involved in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems for the global strike and vertical lift, and unmanned airborne systems programs, as well as mobility, surveillance, and engagement. The Network & Space Systems segment engages in the research, development, production, and modification of electronics and information solutions; strategic missile and defense systems; space and intelligence systems; and space exploration products. The Global Services and Support segment offers integrated logistics, including supply chain management and engineering support; maintenance, modification, and upgrades for aircraft; and training systems and government services, such as pilot and maintenance training. The Boeing Capital segment facilitates, arranges, structures, and provides financing solutions, such as equipment under operating leases, finance leases, notes and other receivables, assets held for sale or re-lease, and investments for its commercial airplanes customers. The Boeing Company was founded in 1916 and is based in Chicago, Illinois. Yahoo Finance

 

 

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