Thread by @AlmingtonCap

1/ Just cooked up so fresh FUD for the $BA.D Boys (cc: @PlugInFUD)

In Q3, revenue from Boeing's Defense, Space & Security segment came in at $6.8B, down 2% from the same period in 2019. Earnings from segment operations fared even worse, falling 17% year-over-year to $628M. $BA

https://twitter.com/gurufocus/status/1329805545356873728

2/ During the first 9 months of 2020, Boeing's defense segment brought in revenues of $19.5B, down a fairly modest 3% yoy. The bottom line took a far more substantial hit, however, falling 60% yoy to $1.0B.

$BA $BA.D

https://twitter.com/gurufocus/status/1329805545356873728

3.1/ Pegasus Program Proves Problematic

The KC-46 Pegasus, a next-gen @usairforce tanker, was meant to be an easy win for Boeing. But long development delays have weighed on the program, causing growing frustration among the top brass.

$BA $BA.D

3.2/ As a fixed-price development contract, Boeing is required to shoulder the burden of cost overruns on the KC-46. It booked a $67M charge in Q3, adding to the $4.7B of its own money its already spent on the KC-46. $BA $BA.D
gurufocus.com/news/1092118/b…

4.1/ Starliner's Struggles Sour Supporters

Starliner, Boeing's manned spacecraft, has also suffered a series of embarrassing setbacks. A failed test flight last year led to an investigation, which identified "fundamental" software issues, forcing $BA to book a $410M charge.

4.2/ While Boeing has long been able to rely on the support of powerful allies on Capitol Hill, recent space contract decisions suggest that at least some government decision-makers have lost patience with the venerable aerospace giant.

$BA $BA.D

4.3/ In March, Boeing was beaten by upstart rival SpaceX for the Lunar Gateway supply contract, a program worth up to $7B over 15 years. A month later, it again fell short, failing to secure even a piece of NASA's 10-month, $967M lunar lander development contract.

$BA $BA.D

5/ The troubles facing Boeing's Defense, Space & Security segment have multiplied over the past year. A number of critical development programs have faced painful delays and cost overruns, turning potential cash cows into financial burdens.

$BA $BA.D

https://twitter.com/gurufocus/status/1329805545356873728

6/ Unless Boeing can change course and get its government programs back on track, it may end up alienating its friends & allies in government, which could threaten its ability to win lucrative federal contracts going forward.

$BA $BA.D

link to full note:
gurufocus.com/news/1292900