Boeing stock bumps up despite earnings miss
Yahoo Finance Live's Julie Hyman and Brian Sozzi discuss fourth quarter earnings for Boeing and how the stock is reacting.
Video Transcript
[MUSIC PLAYING]
JULIE HYMAN: What goes down must come up, I guess, is the--
[LAUGHS]
--is the principle under which we're operating today.
BRIAN SOZZI: Oh! That's tough.
[LAUGHS]
JULIE HYMAN: We've got the futures indicating a higher open after some pretty intense wild swings over the past several sessions and a lot of selling as well. NASDAQ futures indicating a gain of 2.5%. And we've seen pretty high level of consistency in the future since we got underway here this morning, which has been unusual. All right.
Let's talk about what's going on with some individual companies as well. Maybe this does go for Boeing too, Brian. I don't know.
[LAUGHTER]
That's what you thought I was talking about it first.
BRIAN SOZZI: Oh, that's tough.
JULIE HYMAN: Boeing out with its numbers this morning and had a surprise free cash flow reading for the first time since 2019. $494 million in 4th quarter free cash flow. Analysts have been looking for negative free cash flow of about a billion dollars.
So that was better than estimated. But overall the numbers otherwise not looking fantastic. That's even as Boeing has been producing more 737 Maxes, now 26 Jets a month up from 19 back in October. That's according to a note that CEO Dave Calhoun sent to employees. So the recovery is happening. It just seems to have quite a long ways to go, Soz.
BRIAN SOZZI: Yeah. I'm just rolling through or just looking through these analyst takes. Our very own Jared Blikre just passed on to our digital desks. One caught my attention. Benchmark analyst Josh Sullivan-- he's still berated on Boeing calling this quarter a bit of a kitchen sink quarter here. But look, you've seen the stock really volatile here. In the premarket, the fact is Boeing lost a lot of money, a lot of uncertainty around the Max, a lot of uncertainty around the outlook for the 787.
And until investors get more clarity on this and a sense of stability, it's going to be hard to get very excited about this stuff.
JULIE HYMAN: Yeah, it does seem that way even as the company talks about relaunching in China and seeing revenue there once again. But again, kitchen sink sort of implies that this is perhaps the worst it's going to get. At least that's what that used to mean. But the stock is not trading as though that's what he means in this particular case, right?
You would expect to see it up more if people thought this was sort of kitchen sink in the sense that they're throwing it all in, and things are going to go up from here, right? Traditionally, that's what that kind of comment would mean.
BRIAN SOZZI: It's been a tough-- Julie, it's been a tough two years. Just optically looking at the core loss per share for Boeing in 2021-- $9.44 a share. The year before that, of course, when everything hit the fan with them with the Max, they lost $23.25 a share. That is the core loss or excluding any one time items.
It just shows how much Boeing has struggled over the past two years, has struggled last year, and will likely struggle just to regain. A lot of the bulls in the street that had liked Boeing before the past few years of operational messes.
[MUSIC PLAYING]
[STOCK MARKET BELL RINGS AND APPLAUSE]
JULIE HYMAN: So there's the opening bell on your Wednesday. And Boeing's a little bit of a bump notwithstanding overall. It looks like we are going to have a higher open here this morning. Will that remain intact again? We'll see. A lot of that is going to depend on Jake Powell and company and then a Federal Reserve announcement and then press conference this afternoon.
