On September 11, a caller praised The Boeing Company's (NYSE:BA) CEO and asked when the company would overcome the ongoing labor uncertainty and finally move beyond years of sideways stock performance. Mad Money host Jim Cramer replied: I think that Boeing is ready to go up. Every time crude goes up a dollar, the stock goes down a dollar.
And that, think about it, that was actually the ratio. And because today crude was down, Boeing went up $5... No, it's so stupid because, in truth, the airlines need more planes because the planes are more fuel-efficient.
So they actually do better in this environment, but nobody cares. They know that airlines have to borrow money to buy planes and rates are higher, and they think that oil somehow's bad. But what ends up happening is the stock does nothing.
I think it's about to go up because I think oil might be peaking unless there's some catastrophe over there. The Boeing Company's (NYSE:BA) second-quarter results showed improving cash generation, but profitability remained weak. Revenue rose 8% year over year to $24.6 billion, while operating cash flow reached $1.4 billion and free cash flow was $631 million.
Its total backlog reached a record $715 billion, including more than 6,200 commercial airplanes. CEO Kelly Ortberg said, "We're ramping up production just as we planned. That's driving higher revenues and improved cash flow." He also said there's more work ahead to ramp production, complete commercial-aircraft certifications and uphold customer commitments.
Boeing said the 737-7 and 737-10 had completed flight testing, with deliveries expected to begin in 2027. The Boeing Company's (NYSE:BA) large backlog has yet to translate into consistent commercial-aircraft profitability, leaving execution and margins as important concerns for investors. Commercial Airplanes delivered 171 aircraft in the second quarter but still posted a $322 million operating loss and a negative 2.7% operating margin.
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