Listen: Boeing's stock slips after profit misses, guidance delayed
"Boeing estimates that the seven thirty seven max crisis will cost more than a billion dollars initially NPR's Daniel Czeslaw reports analysts to follow the company say the final Bill could be much higher. If you look at chart of Boeing stock performance over the last three years, it's a remarkable upward climb. The stock has more than tripled in value with quarter. After quarter of rising earnings. Today's earnings call was different. It was the first since the planes were grounded. After crashes that together killed three hundred forty six people pilots in both flights appeared to struggle to overcome software. Boeing installed to keep the new design planes flying safely CEO. Dennis Muilenburg started on a somber note, every person who steps board one of our airplanes. Trust in us. And we're committed to earning and rearing that trust and confidence. And then he went through the numbers profits are down thirteen percent compared to this time last year the main cause of that pain with seven thirty seven mex- planes grounded Boeing has not been able to make deliveries on new jets that were ready to go and it took no new orders for any seven thirty sevens. In March analyst Sheila Chialo of Jeffries said seven thirty sevens. Brought in more than a quarter of Boeing's revenues last year. Seven three seven program is very profitable. And it is a large portion of revenue. So if you're not delivering them, you're going to have significant volatility still Boeing's profits for more than two billion dollars in the first three months of the year. A large part of that came from defense contracts and aerospace services Seattle-based analyst, Michelle Maher loose. Oh says these are proof that Boeing is still a healthy company. You've to look at the Boeing portfolio is more than just twenty aircraft. Of course, it is Charlie diversify. Portfolio and there is strong outlook for the defense sector in particular, the seven thirty seven max will not return to flight until the FAA and other regulators around the world approve a software fix and new pilot training. Boeing is still working on those in a sign of its focus on solving the next problem. Boeing said today, it's pausing its program of buying back company. Shares for years Boeing had used its massive cash. Flow to repurchase shares a practice, which raised share value. Howard wielding an aviation analyst based in the UK says that makes sense. It's not a good time to be seen to be buying your Hsieh's when you have such big issues to face in your revenue and earnings outlook over the next two years. And it's January earnings Boeing predicted revenues of about one hundred ten billion dollars this year. But Mullen Burg says he's scrapping that guidance are previously issued twenty nineteen financial guidance. Does not reflect the max impacts Mullen. Berg says he won't have a new forecast until he knows when the planes can"