Boeing Falls Despite 777X testing Success

By Naomi Wentworth • Thursday, December 22 15:01 • Permanent Link

BA investors were likely spooked this afternoon by Reuters's report: "Boeing resumes 777X flight testing after recent engine issue" For more coverage, read the full article here. On the back of this news, Boeing Company sank -4.2% to a price of $187.79. Are the markets overreacting?

Here's an overview of Boeing Company's recent cash flows and operating margins:

Date Reported	Cash Flow from Operations ($ MM)	Capital expenditures ($ MM)	Free Cash Flow ($ MM)	YoY Growth (%)
2021-12-31	-3,416	-980	-4,396	77.7
2020-12-31	-18,410	-1,303	-19,713	-347.31
2019-12-31	-2,446	-1,961	-4,407	-132.57
2018-12-31	15,322	-1,791	13,531	n/a

Date Reported	Revenue ($ MM)	Cost of Revenue ($ MM)	Gross Margins (%)	YoY Growth (%)
2021-12-31	62,286	59,269	4.84	149.49
2020-12-31	58,158	63,843	-9.78	-267.75
2019-12-31	76,559	72,093	5.83	-69.98
2018-12-31	101,127	81,490	19.42	n/a

Date Reported	Total Revenue ($ MM)	Operating Expenses ($ MM)	Operating Margins (%)	YoY Growth (%)
2021-12-31	62,286	6,406	-5.44	75.63
2020-12-31	58,158	7,293	-22.32	-541.38
2019-12-31	76,559	7,128	-3.48	-129.82
2018-12-31	101,127	7,836	11.67	n/a

At today's price of $187.79 per share, Boeing Company is -4.96% away from its target price of $197.6, and on average, analysts give the stock a rating of buy. 1.5% of the company's shares are linked to short positions, and 58.2% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.