Boeing Co (BA) Posts Earnings Beat, But Guides Lower

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Even though Boeing Co (NYSE:BA) beat expectations on both the top and bottom lines this morning, shares of the company’s stock are trading lower in the pre-market after their 2016 guidance came in much lower than expected.

Boeing Co (NYSE:BA) reported earnings per share of $1.51 on $23.57 billion in revenue for the fourth quarter. These numbers surpassed estimates by analysts of $1.27 per share on $23.55 billion in revenue. Now, that’s the good news, but here is the bad news. The company also posted their 2016 guidance, saying that they expect to deliver 740-745 planes this year. This would be 17-22 fewer planes than they sold in 2015. Additionally, Boeing Co (NYSE:BA) said that they expect to earn just $8.15 to $8.35 per share this year as opposed to estimates from analysts of around $9.43.

“Global air passenger traffic growth and airplane demand remain strong, but the air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 Freighter,” Ray Conner, Boeing’s vice chairman, said in a statement.

The stock closed at $128.02 during the last trading session. It is down 12.14% since June 22, 2015 and is downtrending. It has underperformed the S&P500 by 3.27%.

From a total of 5 analysts covering Boeing (NYSE:BA) stock, 2 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 40% of the ratings are positive. The highest target price is $175 while the lowest target price is $145.0. The mean of all analyst targets is $159.25 which is 24.39% above today’s ($128.02) stock price. Boeing was the topic of 8 analyst reports since August 26, 2015 according to the firm StockzIntelligence Inc. Standpoint Research upgraded shares on January 14 to a “Buy” rating. RBC Capital Markets maintained BA stock in a recent report from October 22 with a “Sector Perform” rating.

The institutional sentiment increased to 1.19 in Q2 2015. It’s up 0.22, from 0.97 in 2015Q2. The ratio improved, as 74 funds sold all their Boeing Co shares they owned while 439 reduced their positions. 94 funds bought stakes while 518 increased their total positions. Institutions now own 510.23 million shares which is 2.40% more than the previous share count of 498.26 million in 2015Q2.

Hengistbury Investment Partners Llp holds 22.69% of its total portfolio in Boeing Co, equating to 377,600 shares. Evercore Trust Company N.A. owns 43.30 million shares representing 21.87% of their total US portfolio. Moreover, Ruffer Llp has 12% of their total portfolio invested in the company, equating to 2.14 million shares. The Texas-based Ancient Art L.P. has a total of 9.78% of their portfolio invested in the stock. Levy Harkins & Co Inc, a New York-based fund reported 135,998 shares owned.

Since May 4, 2015, the stock had 0 insider purchases, and 4 selling transactions for a total of $40.73 million in net activity. Verbeck Robert E sold 8,448 shares worth $1.23M. Sands Diana L sold 7,443 shares worth $1.07M. Mcnerney W James Jr sold 261,000 shares worth $37.12 million. Conner Raymond L. sold 8,979 shares worth $1.31 million. The insider Tracy John J sold 23,288 shares worth $3.35 million.

The Boeing Company, together with its subsidiaries, is an aerospace company. The company has a market cap of $85.76 billion. The Firm operates through five divisions: Commercial Airplanes, Boeing Military Aircraft , Network & Space Systems (N&SS), Global Services & Support (GS&S) and Boeing Capital (BCC). It has 16.09 P/E ratio. The Defense, Space & Security (BDS) business includes BMA, N&SS and GS&S.