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Boeing 737 MAX expected to remain grounded until at least August
Boeing Co’s grounded 737 MAX jet is expected to remain grounded until at least August as the manufacturer continues to grapple with software issues, people briefed on the matter told Reuters. The largest planemaker has signaled it now hopes to win regulatory approval in August for the plane’s return to service, but that could be pushed backed until fall, the sources said, as timing for meeting milestones is uncertain.
The best-selling airplane has been grounded since March 2019 after two fatal crashes in five months killed 346 people. Boeing halted production in January and has 400 undelivered MAX planes in storage.
Southwest Airlines Co (LUV.N), the largest operator of 737 MAX airplanes worldwide, said Tuesday it was removing the MAX from its schedule through Oct. 30 based on Boeing’s “recent communication on the MAX return to service date.” Last week, Reuters reported that a key certification test flight had been delayed until late May at the earliest and reported in early April the company was dealing with two new software issues. The Federal Aviation Administration (FAA) has repeatedly said it has no timetable for approving the plane’s return to the skies.
Boeing declined to comment ahead of its earnings release Wednesday. On Monday, Chief Executive Officer Dave Calhoun during the company’s annual meeting did not repeat prior guidance that Boeing anticipated the plane would win approval for a return to service in mid-2020. “We remain confident in the MAX,” Calhoun said. Boeing said on April 7 it needed to make two new software updates to the 737 MAX’s flight control computer.
One issue involves hypothetical faults in the flight control microprocessor, which could potentially lead to a loss of control known as a runaway stabilizer. The other issue could lead to disengagement of the autopilot feature during final approach. Boeing said on April 7 it was working with Raytheon Technologies Corp RTX.N unit Collins Aerospace Systems on the software updates, but it remained unclear when Collins will complete work and how long it will take U.S. and other regulators to validate the fixes as they complete a software documentation audit.
Last month, Boeing decided to separate 737 MAX wiring bundles that regulators had flagged as potentially dangerous, Reuters reported. In February, Boeing said it would need a software update to address a 737 MAX indicator light issue. In January it disclosed a separate software issue relating to a power-up monitoring function.
Boeing is also inspecting 737 MAX airplanes after it discovered foreign object debris in undelivered airplanes in February.
https://www.reuters.com/article/us-boeing-737max/boeing-737-max-expected-to-remain-grounded-until-at-least-august-sources-idUSKCN22A35G
GRZLY50 C-560 out of Miramar nw
GRZLY07 Beech Huron departed SoCal Logistics Airport-Victorville and did a fly-by at Laughlin Bullhead Int'l (sure it is) Airport and sw towards Miramar
rek't
_80-1070 U2 out of Beale AFB ne
got a paperclip last time..
Google Jumps After Beating On Revenue, Despite Warning Of "Significant Slowdown" In March Ad Revenue
After a worse than expected earnings season so far (so far US EPS of -24% yoy has come in some 9% lower than consensus expectations among companies reporting so far), traders were especially curious to see what Google earnings would look like today for two reasons: Google, as Goldman cautioned over the weekend, was one of the big five tech names that had been spared much of the pain that hit the rest of the S&P500, opening up a giant and unsustainable gap from the rest of the market with the largest 5 "FAAMG" stocks in the S&P500 now accounting for 22% of market cap, even higher than during the dot com bubble…… while at the same time anecdotal industry updates suggested that online ad revenues - the lifeblood of Google - had collapsed, something that GOOGL stock clearly failed to reflect. Which is why today's Google Q1 earnings could be so critical: if indeed as bad as some had suggested, a Google crash would hammer the group that was clearly the market's leadership. And needless to say, the health of Google’s ad business will be a bellwether for other tech platforms. Facebook and Twitter report later this week.
With that in mind, this is what Google reported moments ago:
Q1 EPS $9.87, missing estimates of $10.35, but higher than the $9.50 a year ago.
Q1 Net Revenue (ex TAC) of $33.71BN, beating estimates of $32.6BN
Q1 Operating Income of $7.98BN, missing the estimate %8.06BN, and up 19% Y/Y
Here is how Google did on some other performance metrics:
Q1 Google properties revenues $28.54 billion, beating the expected $27.91 billion and +11% y/y,
Q1 Google advertising revenue $33.76 billion, also beating the expected $33.56 billion, and +9.9% y/y,
Q1 Google Cloud revenue $2.78 billion, +6.2% q/q
Q1 Youtube Ads Rev. $4.04B, -14% Q/Q
Q1 Google other revenue $4.44 billion, beating estimates of $4.28 billion and -19% y/y,
Q1 Other Bets revenue $135 million, missing estimates of $194.4 million and -21% y/y,
Q1 capital expenditure $6.01 billion, +29% y/y
Q1 Operating margin 19% vs. 18% y/y
Commenting on the earnings, CFO Ruth Porat said that "our business, led by Search, YouTube, and Cloud, drove Alphabet revenues to $41.2 billion, up 13% versus last year, or 15% on a constant currency basis. And while "performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues. We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities."
So a beat on the top line but miss on the bottom with several key indicators mixed. Certainly it was not as bad as some had expected, and explains why initially knee-jerking lower, the stock is now higher. Of course, one word out of place during the conference call can sink all the gains, especially as analysts will certainly want to know just how bad the March "significant slowdown" was and how long it will persist. But for now, it appears that FAAMG may have escaped the momentum crash that Goldman warned about.
https://www.zerohedge.com/markets/google-jumps-after-beating-revenue-despite-warning-significant-slowdown-march-ad-revenue
how much have you fuckers put in the "goodwill" basket this qtr????-was $24b last time I looked about 2 qtrs ago.'