The debacle is tracked here 'cause I think this ends badly for Boeing.
October 14, 2019: Pilots for Southwest Airlines predict the 737 MAX will be delayed beyond 4Q19. On a bank holiday, Boeing was down half a percent today.
September 1, 2019: the FAA says it needs a few more weeks to complete the review.
July 31, 2019; GE cash flow: hit by 737 MAX groundings. Link here.
July 29, 2019:
July 29, 2019:
July 26, 2019: Southwest Airlines exits Newark, NJ, due to 737 MAX grounding;
Later, 1:10 p.m. CT: My hunch is that Boeing execs realize that even if the MAX 737 is certified 100% safe, "no one" will believe them. This is a trial balloon. By the end of the year, BA will end production of the MAX 737.
Later, 10:02 a.m. CT: take out Boeing, CAT, and Apple today and the Dow would be up 30 points, maybe more, depending on the algos.
Yet to come: investor lawsuits.
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Wow, look at this huge miss: link to Investor's Business Daily -- Zacks actually thought BA would report an EPS of almost $2.00/share, from a prior view for a loss of 56 cents/share. They should have stuck with their original estimate. Actual results: a loss of almost $6/share.
Estimates: Zacks changed its forecast to EPS of $1.85, implying analysts are excluding Boeing 737 Max charges, from a prior view for a loss of 56 cents per share. Revenue was seen falling 26% to $17.98 billion.
Results: Loss of $5.82 a share, including Boeing 737 Max charges, on revenue of $15.75 billion, down 35 %. Free cash flow was negative at $1.01 billion. Commercial aircraft revenue sank 66% to $4.72 billion. Defense and space revenue rose 8% to $6.61 billion. Global service revenue grew 11% to $4.54 billion.More from Boeing:
- Commercial aircraft revenue: sunk 66% to $5 billion (rounded).
- Non-commercial aircraft revenue: $7 billion (rounded).
- Negative cash flow. Wow.