Boeing stock soared on Wednesday to notch its best single-day advance in more than two years after the Dow Jones aerospace manufacturer provided an operations update.
Boeing (BA) CFO Brian West on Wednesday at the Bank of America Global Industrials Conference said the company is “broadly tracking” to hit first-quarter expectations, according to reports. West added that Boeing’s Q1 earnings per share will include a one-time expense of $150 million. He also said that Boeing was seeing less working capital drag, which could improve free cash flow by several “hundreds of millions” by quarter close.
“So, we think we’re off to a good start to the year,” he said. Meanwhile, production appears to be in “fantastic” shape, targeting completion of 38 units of the 737 Max planes per month. Output for the 787 Dreamliner is stabilizing at five planes per month, and is poised to move higher.
West said that March aircraft deliveries should be in line with February’s numbers. Boeing last month delivered 44 aircraft, up nearly 63% from the same period last year. The deliveries included 32 of the 737 line of planes and five 787 aircraft.
Elsewhere, Wells Fargo on Tuesday raised its price target on Boeing stock by 10 to 113. The firm now estimates free cash flow of $7 billion to $8 billion in 2027, below the consensus of $9 billion. Boeing in 2022 said it expects to hit $10 billion in free cash flow by 2027. But since that time, defense has deteriorated, interest rates are higher, the 777x program is suffering from issues and union contracts are adding costs, analyst Matthew Akers wrote in a research note reported by The Fly.
