{"id":26738,"date":"2016-01-27T17:15:55","date_gmt":"2016-01-27T23:15:55","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=26738"},"modified":"2016-01-28T11:50:02","modified_gmt":"2016-01-28T17:50:02","slug":"boeing-shares-tumble-on-disappointing-forecast","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/boeing-shares-tumble-on-disappointing-forecast\/","title":{"rendered":"Boeing shares tumble on disappointing forecast"},"content":{"rendered":"

By Siri Bulusu<\/strong><\/p>\n

Boeing Co. shares took a nosedive Wednesday after the aerospace giant unsettled investors by disclosing that full-year 2016 earnings will fall well short of Wall Street expectations.<\/p>\n

In New York Stock Exchange trading Wednesday, the Chicago company\u2019s shares tumbled a punishing 8.7 percent, closing down $11.43 at $116.58.<\/p>\n

Boeing\u2019s fourth quarter profit performance actually exceeded expectations, but investors opted to focus instead on the company\u2019s downbeat 2016 outlook.
\n<\/p>\n

Analysts surveyed by Yahoo had been expecting 2016 revenues to reach $97.17 billion, but Boeing officials said the company now expects 2016 revenue of $95 billion at most. And while analysts had been expecting adjusted per-share earnings of $9.43 for 2016, the company said it expects earnings in a range of $8.15 to $8.35.<\/p>\n

In the latest quarter, revenues slumped 3.7 percent to $23.57 billion from $24.47 billion a year ago.<\/p>\n

The new 2016 guidance \u201cwas disappointing,\u201d Jeff Windau, a senior analyst at Edward Jones, wrote in a note to clients. \u201cCommercial margins remained under pressure with higher spending on research and development and a sluggish cargo market,\u201d Windau added.<\/p>\n

In the latest quarter, Boeing reported net income of $1.03 billion, or $1.51 per diluted share, down 30 percent from $1.47 billion, or $2.02 per share in the year-ago quarter. Boeing said its \u201ccore earnings,\u201d which exclude certain pension obligations, were $1.60, down from $2.31 a share.<\/p>\n

Boeing\u2019s earnings would have been 84 cents higher, except for an $884 million pretax charge the company took to account for slowing its 747-8 production rate to 0.5 planes per month, from 1.3 planes per month in August 2015.<\/p>\n

Boeing delivered a record 762 commercial planes in 2015, and grew its backlog to 5,800 airplanes, which will satisfy eight years of production, according to Randy Tinseth, Vice President of Marketing for Boeing Commercial.<\/p>\n

Deliveries will slow in the current, the company said: Boeing estimated a maximum 745 commercial plane deliveries in 2016, an issue Windau said could \u201cweigh on stock performance.\u201d<\/p>\n

\u201cCommercial Airplanes fourth-quarter revenue decreased slightly to $16.1 billion on lower delivery volume,\u201d stated Boeing\u2019s press release. <\/p>\n

“We are closely monitoring the air cargo market as we work to win additional orders to support ongoing future production,\u201d said Greg Smith executive vice president of Business Development & Strategy and chief financial officer in a press release.<\/p>\n

Boeing\u2019s full-year net income fell to $5.18 billion, or $7.44 a share, from $5.45 billion, or $7.38 a share; revenues were $96.11 billion, 6 percent up from last year\u2019s revenue of $90.76 billion.<\/p>\n

Photo at top: Boeing’s Chicago headquarters. The company’s stock fell after officials offered a disappointing 2016 forecast. (Siri Bulusu\/MEDILL)<\/div>\n","protected":false},"excerpt":{"rendered":"

By Siri Bulusu Boeing Co. shares took a nosedive Wednesday after the aerospace giant unsettled investors by disclosing that full-year 2016 earnings will fall well short of Wall Street expectations. In New York Stock Exchange trading Wednesday, the Chicago company\u2019s shares tumbled a punishing 8.7 percent, closing down $11.43 at $116.58. Boeing\u2019s fourth quarter profit […]<\/p>\n","protected":false},"author":220,"featured_media":26757,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,585],"tags":[51,1087,86],"class_list":["post-26738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-winter-2016","tag-boeing","tag-commercial-aircraft-market","tag-earnings"],"yoast_head":"\nBoeing shares tumble on disappointing forecast - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/boeing-shares-tumble-on-disappointing-forecast\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Boeing shares tumble on disappointing forecast - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Siri Bulusu Boeing Co. shares took a nosedive Wednesday after the aerospace giant unsettled investors by disclosing that full-year 2016 earnings will fall well short of Wall Street expectations. 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