The Company's preliminary financial results are based on management estimates and are subject to completion upon completion of quarterly financial and accounting procedures. The information disclosed in this article is based on a Boeing press release, and actual results may differ when completed and publicly disclosed. Boeing's fourth-quarter results will be officially announced on January 28. Based on current data InvestingPro Analysis The stock appears to be overvalued, with analysts setting price targets ranging from $85 to $250. Investors looking for deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of Boeing's financial health, valuation metrics, and growth prospects, along with 7 additional exclusive ProTips. On a current basis InvestingPro Analysis The stock appears to be overvalued, with analysts setting price targets ranging from $85 to $250. Investors looking for deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of Boeing's financial health, valuation metrics, and growth prospects, along with 7 additional exclusive ProTips.
The financial impacts stem from the IAM work stoppage and subsequent agreement, as well as charges related to certain defense, space and security programs and the costs of workforce reductions announced the previous year. Boeing's Commercial Airplanes segment is expected to generate revenue of $4.8 billion with an operating margin of 43.9 percent, driven by lower deliveries and pre-tax earnings charges of $1.1 billion on the 777X and 767 programs.
Specifically, the 777X program faces a pre-tax charge of $0.9 billion due to increased labor costs associated with completing the IAM agreement, which will be incurred over the coming years. Despite these setbacks, Boeing still expects to deliver the first 777-9 in 2026.
Boeing's Defense, Space and Security division is also expected to recognize pre-tax earnings charges totaling $1.7 billion on several programs, including the KC-46A tanker and the T-7A trainer, with the KC-46A program alone accounting for $0.8 billion of Total flight costs. Charges due to higher manufacturing costs and the impact of IAM downtime. The department expects fourth-quarter revenues to reach $5.4 billion and an operating margin of (41.9) percent.
Kelly Ortberg, Boeing's president and CEO, acknowledged the near-term challenges, but emphasized steps taken to stabilize the business, such as reaching an agreement with employees represented by IAM and successfully raising capital to improve the company's balance sheet. Boeing also resumed production of its 737, 767 and 777/777X models.
The Company's preliminary financial results are based on management estimates and are subject to completion upon completion of quarterly financial and accounting procedures. The information disclosed in this article is based on a Boeing press release, and actual results may differ when completed and publicly disclosed. Boeing's fourth-quarter results will be officially announced on January 28.
In other recent news, Boeing Company (New York Stock Exchange:). It faced a significant decline in annual births in 2024, reaching its lowest level since the Covid-19 pandemic. The company delivered a total of 348 commercial aircraft, a sharp decline from 528 aircraft the previous year. The European operator of the Boeing 737 Max aircraft expects the company to regain its competitiveness with the expected return of Donald Trump to the White House.
Furthermore, Boeing's Q4 2024 delivery numbers revealed a total of 57 commercial aircraft were delivered, contributing to a total of 348 aircraft annually. The 737 topped deliveries with 36 units in the fourth quarter, closing the year with 265 deliveries. Amid these developments, Boeing is currently negotiating a new deal with US prosecutors related to two 737 MAX crashes.
In addition, AerCap, the world's largest aircraft leasing company, has expressed concerns about potential trade tariffs proposed by US President-elect Donald Trump, which could disrupt Boeing's cash generation. On a positive note, Barclays (LON:) upgraded Boeing shares from equal weight to overweight, anticipating sustained positive momentum in production and deliveries throughout 2025. These are the latest developments related to Boeing Co.
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