Boston, MA 01/30/2014 (wallstreetpr) – Post The Boeing Company (NYSE:BA) disappointing guidance, stocks have dipped by over 5%, though the aircraft manufacturer did have an above-average previous quarter results. Apparent drop in investor sentiment is driven by uncertainties associated with emerging markets, which are a key to Boeing’s growth prospects in the next few fiscals.
Primary growth drivers, for one of the world’s largest commercial aircraft maker, have been the awe-inspiring Dreamliner and the 777x carriers. The Boeing Company (NYSE:BA) massive growth in the past quarters has been the pre-ordering of the Dreamliner, a two-floor over-sized commercial passenger carrier. Besides, other smaller-sized configuration aircraft, which also boast of superior passenger comfort and new-age design, style factors too have driven the airline industry over the past few years.
International airlines induct Dreamliner
As airlines from India, Turkey, China and Indonesia place orders constituting nearly one-third of the total orders placed, the overall value of orders is now to the tune of $135 billion last year. Boeing has a backlog delivery requirement valued at $441 billion.
Soft guidance drives investors away
Despite the numbers on paper, investors are reading the soft guidance on face value, leading to a drop of over 6% and likely to see same sentiment in the near future. T
The main concern is seen as the sharp fall in currency exchange rates.
As Asian buyers are likely see higher interest rates as a major deterrent in going through with their orders, The Boeing Company (NYSE:BA) may run into trouble, with most payment and delivery timelines likely to be deferred by a few quarters.
However, Boeing’s executive Jim McNerney believes that the currency fluctuations will not necessarily play a major role as the trade-off over even nearly quarter percent in prices is expected to be made up by The Boeing Company (NYSE:BA) aircrafts by nearly fifty percent due to the higher passenger-strengths these carriers possess.
