Boeing Crashed 9%: Does It Make Sense?

Boeing

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.

 

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