Boeing tops Dow Jones gainers on Dreamliner approval, strike delay

nycshooter/iStock Unreleased via Getty Images

Boeing (NYSE:BA) tops the Dow Jones, +6.2% in early trading Monday following a double dose of good news over the weekend that could bring upside to the company’s earnings estimates for the rest of 2022.

The Federal Aviation Administration has approved inspection protocol revisions that should allow the company to resume deliveries of its 787 Dreamliner since stopping all deliveries since June 2021 after quality problems were found in manufacturing.

The approval clears the way for Boeing (BA) to deliver ~120 Dreamliner jets that were built and parked, which Morgan Stanley analysts say would unlock $17B in revenues; Wall Street currently projects the company will deliver ~85 of the jets this year.

Also, Boeing (BA) defense workers will vote on a new proposed labor agreement on Wednesday, averting at least for now a strike that could have begun today.

The 2,500 workers represented by the International Association of Machinists and Aerospace Workers rejected Boeing’s (BA) initial contract offer a week earlier.

Top Boeing (BA) supplier Spirit AeroSystems (SPR) +3.2%.

Separately, Boeing (BA) said Monday it will open a new research facility in Japan to further development of sustainable aviation fuels, electric and hydrogen aircraft technology, and future flight concepts that will promote zero climate impact aviation.

Boeing (BA) recently reported mixed Q2 results that included surprise positive operating cash flow, but the company also lowered its 2022 delivery target for the 737 MAX.

Leave a Reply

Your email address will not be published.