Boeing Co BA shares are trading lower Wednesday following the company's presentation at the Bank of America Global Industrials Conference. Comments from CFO Brian West appear to be weighing on the stock.
What To Know: West spoke at a BofA conference Tuesday morning and touched on several financial targets. West laid out expectations for the planemaker to deliver between 70 and 80 787 Dreamliners in 2023 and noted that 737s are being ramped up but are "not there yet," according to Benzinga Pro.
The company anticipates Max-7 certification this year, while the Max-10 is not expected to be certified until 2024.
The Boeing CFO warned that commercial unit margins are likely to decline in the first quarter versus the fourth quarter and noted that the company also expects lower volumes. West did reiterate Boeing's 2023 free cash flow goal of $3 billion to $5 billion.
Following the presentation, Wells Fargo analyst Matthew Akers maintained Boeing with an Overweight rating, but lowered the price target from $240 to $230.
On Wednesday morning, West reportedly said Boeing expects to incur additional charges related to its KC-46 tanker program as a result of supplier quality issues related to the central fuel tank, per Reuters. Boeing's defense business margins for the first quarter are expected to be negative as a result.
Related Link: Boeing Takes Additional Charges Related To KC-46 Quality Issue: Report
BA Price Action: Boeing shares were down 2.34% at $199.91 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Boeing.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
