Boeing (NYSE:BA)
The share price of Boeing (NYSE:BA) increased by 4.7% on Wednesday after the aircraft manufacturer announced an expectation for this year’s free cash flow during its investor day that was higher than the estimates supplied by Wall Street.
According to the business’s CFO Brian West, Boeing stock anticipates a free cash flow of $1.5 billion to $2 billion for 2022, much higher than the consensus estimate of $670.3 million. The capacity of Boeing to pay down its debt and deliver airplanes is directly correlated to the company’s free cash flow, making it a necessary measure.
A surge in the number of deliveries of Boeing’s 737 and 787 planes is also expected to boost the company’s free cash flow estimates for the year 2023, which range from $3 billion to $5 billion. The management team at Boeing projects that the company will generate a normalized free cash flow of $10 billion and sales of $100 billion by the year 2025.
According to the projections made by the firm, the number of commercial aircraft deliveries will reach at least 800 in the years 2025 and 2026, with an increase in the number of 737s and 787s.
By the close of trading on November 1, Boeing stock price had dropped 32% this year, compared to a decline of 20% for the S&P 500 index (SP500).
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Boeing stock rose after an update on the company’s free cash flow presented at investor day.
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Author Shariq Khan 
