Boeing Next on the Chopping Block?

[David in MN]

Along with their 737 woes Boeing has a balance sheet it's hard to be envious of. Just a quick Google finance search yields:

Quarterly financials
(USD)         Dec 2019   Y/Y
Revenue         17.91          -36.8%
Net income      -1.01B   -129.5%
Diluted EPS      -1.79            -130.19%
Net profit margin   -5.64%   -146.69%

That's not good. Aerospace has been a disaster of late with stories of the failing F-35 and Boeing making faulty passenger jets (it's bread and butter) so the hole industry looks diseased but for Boeing to post numbers this bad is a bit of a red flag to any investor. That's a particularly nasty quarter.

[scoop]

Along with their 737 woes Boeing has a balance sheet it's hard to be envious of. Just a quick Google finance search yields:

Quarterly financials
(USD)         Dec 2019   Y/Y
Revenue         17.91          -36.8%
Net income      -1.01B   -129.5%
Diluted EPS      -1.79            -130.19%
Net profit margin   -5.64%   -146.69%

That's not good. Aerospace has been a disaster of late with stories of the failing F-35 and Boeing making faulty passenger jets (it's bread and butter) so the hole industry looks diseased but for Boeing to post numbers this bad is a bit of a red flag to any investor. That's a particularly nasty quarter.

And let's not forget the KC-46 Pegasus with its numerous problems. It's a fixed price contract so their on the hook to fix the hundreds of deficiencies that's been noted so far.
There is a real culture problem in Boeing. Who sends out a plane that's got trash in sealed panels? Who re-invents a cargo floor that can't be used because locks come loose. I can go on, but it's a real problem for Boeing.

[David in MN]

Yeah, they look shaky. My trader group likes to call me the "Kiss of Death" because when I sour on an investment it tends to go south. I have to go deeper into the books on Boeing but it looks like their upkeep costs are strangling them. To launch a product and be stuck retrofitting it over and over sucks out all profit. The bottom line is that they are in the quicksand and trying to stay afloat. Their bias to loose capital money is not reassuring.

As always, I have no idea what I'm talking about. There is no advice here.