JPMorgan Slashes Boeing’s Profit Projections
Written on November 25, 2010 by Maragaret Harrison
Reuters
Concerned about the impact of the latest 787 Dreamliner delays, JPMorgan slashed its 2011 profit projections on aerospace giant Boeing (BA) on Monday.
According to Dow Jones Newswires, JPMorgan lowered its 2011 EPS estimate by 30 cents to $4.35 a share due to the expected six-month delay in the 787 Dreamliner program.
While Boeing was expected to begin deliveries in May 2008, the program has been plagued by a number of design and supply chain problems and then earlier this month by an electrical fire during a test flight.
“We see all of these issues as fixable, and while it is hard to have confidence in any new schedule, we see a six month slide as a reasonable starting point,” JPMorgan wrote, according to Dow Jones.
RBC also issued a note on Monday predicting a six-month delay on the Dreamliner program but left its outlook unchanged and maintained its “outperform” rating, Dow Jones reported.
Shares of Boeing descended just a bit on the news, sinking 0.45% to $64.51 ahead of Monday’s opening bell. The company’s stock has rallied almost 20% year-to-date.
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