Post-earnings Boeing shares tanked over 9% due to a weak 2016 guidance.
AeroAnalysis analyzed the guidance in an extensive article published on SeekingAlpha and concluded the following:
- Boeing expects a higher revenue per airframe, most probably caused by higher Dreamliner deliveries and slightly lower 737 deliveries
- Profit for 2016 should be close to $9 bn
- Analyst expectations were simply too high
Given Boeing’s long term outlook and strength of its commercial airplane products, Boeing shares are currently trading at a discount.