Boeing Jumps, Warner Brothers Discovery Gains, Philip Morris Drops on Earnings Forecast - podcast episode cover

Boeing Jumps, Warner Brothers Discovery Gains, Philip Morris Drops on Earnings Forecast

Dec 02, 20254 min
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Episode description

On this episode of Stock Movers:
- Boeing (BA) shares jump after the company said it expects to generate cash again in 2026, a significant reversal in the planemaker’s finances as it prepares to boost monthly production rates and pushes ahead with certification for the much-delayed 777X jetliner.
- Warner Brothers Discovery (WBD) shares gain on news that the company was fielding a second round of bids on Monday, including a mostly cash offer from Netflix Inc., in an auction that could wrap up in the coming days or weeks, according to people familiar with the discussions.
- Philip Morris (PM) shares fall after the company reaffirmed its adjusted earnings per share forecast for the full year. This forecast represents a projected increase of 13.5% to 15.1% versus adjusted diluted EPS of $6.57 in 2024.

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Transcript

Speaker 1

Bloomberg Audio Studios, podcasts, radio News.

Speaker 2

The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.

Speaker 3

Let's take a look at some of the stocks on the move today. We're joined by Bloomberg Christina. You know, Christina, what are you looking at?

Speaker 1

Let's take a look at Boeing, shall we? So? Boeing took her BA. Those shares are doing really well today of eight point five percent, and that is because we heard from CEFO j Malave saying that the company expects to generate cash on an annual basis in twenty twenty six. This is major because they have not had positive free cash flow on an animal basis since twenty twenty three, right, and we have seen analysts saying that they now see Boeing generating two point four to six billion in free

cash flow next year. Now, the slightly negative news is that those same analysts have been pairing their casual expectations by more than half since mid July. Because you know, Boeing is not in the clear right. We know that it still has issues. It's facing further delays on its triple seven X plane. Now more than seven years behind

schedule to twenty twenty seven. That's the current production for those plane production for them to hit the market, and then of course they're going to be taking or they took a four point nine billion a county charge in October. They're expected to pay the Justice Department a large sum next year to resolve a case from the resolution of two fatal crashes of its seven three seven max. So a lot of issues still for Boeing, but that is a silver lining positive free cash flow for twenty twenty.

Speaker 2

Six and Christina. Another company that everyone is watching today is Warner Brothers. What can you tell us about this bidding war that they're at the center of.

Speaker 1

Yeah, absolutely addicts. Well, the bidding war, at least for today is positive for shares. So we are seeing those gains there. Take your WBD. Those shares are up nearly one percent. And as you mentioned the latest developments right Warner brought asked the bidders to come up with better offers and they have delivered so far. In Netflix, apparently it has a mostly cash offer, according to people familiar with the discussions. Meal paramounts is backed of course by

Oracle co founder Larry Ellison. That also includes some death financing from Apollo and some contributions from Middle East Fund. Now, apparently the offers are binding, so as soon as they satisfy whatever the goals of the board are, then they can be quickly approved. So that is the good news for shareholders. It's just that they still have yet to make a final decision. Now, apparently this deal has ruined Thanksgiving for bankers because they work through.

Speaker 3

Giving many times stocks twenty four and change. Here the company has said and passed a like thirty. That's a pretty big bid spread. To see if they can tighten that up here between now and when they get the final bids in one more, what do you got.

Speaker 1

Let's take a look at deel so tick her dee l l.

Speaker 2

The story.

Speaker 1

Yeah, those shares are skyrocketing, I mean, or today it was modest gains, but now up three and a half percent, and that is simply because of President Donald Trump primarily. So okay, the story is that Michael and Susan Dell apparently saying that they're going to be giving six point

twenty five billion dollars to the Invest America Initiative. This is better known as the Trump Accounts right for kids that are born between twenty twenty five and twenty twenty eight, and a Trump administration aiming to see those accounts with one thousand dollars each. So the Dell's gift will go to Treasury Department that will fun accounts for an additional twenty five million children who are aged ten and under

who are not already eligible for government money. And now, of course, the shares are merely rising because the move droop praise from President Donald Trump say on truth Social he says, quote two great people. I love Dell and that was enough to That's all.

Speaker 2

You need need the stock Mover's report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.

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