Boeing (NYSE:BA) beat estimates for its fourth quarter, giving a temporary lift to BA stock today.
For the period, , or 4 cents per share, on revenue of $22.01 billion. This compared with a loss of $663 million, or $1.06 per share, on revenue of $19.98 billion the same time last year.
Shares of BA opened today at $204.92 per share and a market capitalization of around $125 billion. As of this writing, the stock is up about 3% for the day.
BA Stock and the Bigger News
The bigger news with Boeing, however, is that Boeing has suspended its earnings guidance due to fallout from its 737 MAX problems. CEO David Calhoun said to talk about future earnings.
Investors have been betting that new 737 deliveries would increase cash flow and lead to profits. Analysts on TipRanks still have 22 ratings on BA stock, with 16 of them being .
Looked at strictly by the numbers, BA stock should be cheap, given its sales of $76 billion and overflowing order book. But the Alaska Air Group (NYSE:ALK) 737 MAX that lost a door plug recently was the , the latest version of the plane. Those planes are but the aircraft maker’s .
Two fatal crashes involving late in the last decade led to groundings worldwide. Boeing’s previous CEO was and replaced by then-director David Calhoun, known as a “Mr. Fix-It” at General Electric (NYSE:GE) and Blackstone (NYSE:BX).
Calhoun hasn’t fixed it. Now, the CEO faces the that dogged his predecessor. His style is more apologetic and transparent, but the corporate culture .
Critics are left hoping that coming will lead to change.
What Happens Next?
Calhoun promised to at the expense of product, but he has been in charge for four years now. NFL coaches get fired faster than that.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
