Boeing Goes Boing! Boing! Apple Gets A Big Bite // Up, Down + All Over The Place

27 January 2016

Boeing Goes Boing! Boing! Apple Gets A Big Bite // Up, Down + All Over The Place

Forward-looking statements and financial markets can be fickle, or even "unusually uncertain" . . . one day it's rosy and sweet//extreme market conditions everywhere!
The problem: projections and forecasts - local examples Boeing and Apple and the list "accomplishments" put out by the City of Mesa Office of Economic Development . . . it's not accomplished simply by saying that. Case in point:
Boeing Plunges as 2016 Profit Forecast Misses Estimates
That's one of today's headlines in Bloomberg Business
January 27, 2016 — 5:47 AM MST Updated on January 27, 2016 — 6:05 AM MST

"Boeing Co. tumbled in premarket trading after the planemaker said profit this year would miss analyst estimates by more than a dollar a share as it delivers fewer jetliners. . .
The company has already announced plans to slow output of its 747 jumbo jetliner this year and executives have said they are studying a similar production cut for the best-selling 777 jetliner amid a transition to an upgraded model.
Boeing shares declined 6.5 percent in early trading."

Readers can see in the infographic to the right data from 2005-2014 for projections of Free Cash Flow compared with what's reported and a trending with an upward slope with estimated annual growth of about 3%.
A post yesterday from Aerospace Defense News featured, without comments, what Boeing was saying about financing. Keep in mind Boeing is in a very competitive global marketplace in both commercial aircraft and the defense industries.

Here's a micro of Boeing's stock performance for about a month's period Dec 2015-Jan 2016 - Boing! Going! bouncing up and down in "unusually uncertain" markets.

That's the way it goes.

What's not "unusually uncertain" is what appears in a slick in-house brochure put out by the City of Mesa Office of Economic Development for one "accomplishment" in 2014 [two years ago] for a capital investment by Apple of $$1,500,000,000 - notice all the zeroes - it would have been usual just to use $1.5B but that's not so impressive for sure.
It's always been puzzling to yours truly why a company like Apple [listed in the brochure under the industry category information - it's quite more than that] need two "global command centers" within a few hundreds mile of each other, but we'll leave that consideration aside. The OED is always bragging about job creation frequently using sweet projections and not reporting the actual jobs that get people employed and earning salaries, usually saying they're going after "high-paying" jobs. - not so with Apple line entry: the average wage is listed as TBA or to be announced. Jobs were listed as 150 - seriously revised down in industry reports before the brochure got published to about 80.

The company's first-quarter net profit rose to $18.36 billion from $18.02 billion, while revenue increased 1.7 percent to $75.87 billion, both records for the company. Analysts, though are worried.