Why Boeing Company stock (NYSE: BA) fell over 4% Tuesday?

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Why Boeing Company stock (NYSE: BA) fell over 4% Tuesday?

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 Why Boeing Company stock (NYSE: BA) fell over 4% Tuesday?
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Summary

  • The company plans to cut production of Boeing 787 Dreamliners to fix defects.

  • The stock prices fell by 4.23 percent at the market close on July 13.

  • The company to announce its second-quarter earnings on July 28.

The Boeing Company (NYSE: BA) stock prices fell by 4.23 percent to US228.20 at the market close on July 13 after the company announced to cut production of the 787 Dreamliner fleet as it needs to do rework on the structural problems of the aircraft.

Boeing had recently announced that the output of its 787 Dreamliner would be less than five aircraft per month but would resume normal production after it fixes the glitches.

It is currently in discussion with the FAA regarding inspection and verification tasks. It has delivered 12 Boeing 787 Dreamliners in Q2 and 14 since so far this year. It delivered a total of 79 commercial airplanes in Q2, way below the estimated 128, and delivered 156 commercial planes YTD.

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Source: Pixabay.

The market capitalization of BA is US$135 billion. The forward P/E 1 year is -326.42, and earnings per share are US$0-20.56. Its beta is 1.62. The 52-week highest stock value of the BA is 278.57, and the lowest is US$141.58. Share volume is 14,500,809. Its stock prices went up by 14.19 percent YTD and 31.78 percent YoY.

The company reported total revenue of US$15.2 billion in Q1, 2021, compared to US$16.9 billion in the year-ago period. It reported a net loss of US$561 million or US$0.92 per share. It was US$641 million or US$1.11 per share in Q1, 2020.

Operating cash flow was US$3.4 billion, and cash and marketable securities were US$21.9 billion. Total backlog grew by US$364 billion. The company received a total of 76 orders in this quarter.

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The loss is mainly due to low deliveries of Boing 787 and a lower volume of commercial services, partially due to the pandemic. It will report its second-quarter earnings on July 28.

On June 30, the company appointed Brian West as CFO and executive VP. The company aims to transform business under the financial guidance of Mr Brian. 

The company recorded total revenue of US$58.1 billion in the fiscal year of 2020. And the net loss was US$11.8 billion, as compared to a net loss of US$636 million in 2019.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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