Why No News Is Good News at Boeing
Managing investor expectations is always crucial in management's job, and it's even more critical at a beleaguered company like Boeing (NYSE: BA). So management's subdued commentary on its last earnings call is probably good in that context. Boeing doesn't need to shoot the lights out regarding production ramps or guiding investors toward bumper profits. Instead, it needs to regain investors' confidence by underpromising and overdelivering quietly, and the second-quarter earnings call may just be the start of that.
The aircraft manufacturer has endured a very challenging few years rife with operational mishaps, significant cost overruns, multi-billion dollar charges in its defense programs, management upheavals, customer criticism, program delays, the 737 MAX grounding, COVID-19 lockdowns, the Federal Aviation Administration (FAA) enforced halt to 787 (Dreamliner) production, and the ongoing difficulty of ramping 737 production in the face of continuing supply chain challenges in 2022. The list seems endless.
Regarding the latter, CEO David Calhoun has been forthright in telling the market that the issues would extend at least into 2023 and possibly late into the year.
Source Fool.com
