Guidance and projections on
corporate earnings is a tricky place. The old adage smoke'em if you got'em
(cigars) is in play when it recognizes cost through write downs against stock
valuations during current constant times. The numbers after third quarter make
even the squeamish turn its color of green into red. Boeing is making
adjustments from both the 787 and 767 Tanker program, pushing its stock around
on a year over year basis. Actual numbers are found in its stock valuation as it drops and changes with the financial models that are set-up for future improvements, and as it
rapidly approaches a "norming" phase for its family of aircraft. Every type is
undergoing a vast changes from the 737 Max to the 787 program with only the
747-8's in a doubtful position.
The
forecasts are cast in shadows from vulnerabilities exposed from its KC-46
tanker program costs to its 777X program having some sales uncertainty. Having
both the Max and 787-10 stepping forward in the same time slot may certainly
arouse some stock pricing angst and will also add to the Boeing risk element
for its financials. Hinting at retiring the 747 program is also a signal Boeing
is propositioning its next foray into advanced technology by losing the monkey
hanging over its head.
In other
words Boeing has dumped cost up front so it may proceed forward in a more solid
financial position as its new programs come into fruition
In spite of the dangers where Boeing is walking
through important program inefficiency, the outlook should improve by year
end or the Beginning of 2017 as it maintains solid production output and then benefiting through generating a
cash abundance environment for its commercial programs.
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