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$BA ---> Boeing Gives Up

The company opened its books for the first time since last month’s Ethiopian Airlines disaster, which a) marked the second deadly crash of Boeing’s 737 Max in five months and b) exposed safety practices that worried some aviation experts. There was significant financial damage as Boeing (+0.36%) tried to contain a growing crisis: 
  1. Boeing missed earnings estimates for only the second time in five years. Q1 revenue fell 2%. Pair that with the growing costs of lawsuits and investigations, pilot training, and a delayed software update, and you get core earnings of $3.16/share, down 13% annually.
  2. Widespread groundings of the 737 Max cost Boeing. Its commercial airplanes segment suffered a $1 billion decline in revenue without the bestseller shipping out.
  3. Boeing is abandoning its forecast for the rest of the year. The guidance it previously issued “does not reflect 737 Max impacts,” Boeing said. “New guidance will be issued at a future date” because of “uncertainty of timing and conditions.”

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