NEW YORK (TheStreet) -- Boeing (BA) - Get Report stock closed down by 8.91% to $116.61 on heavy trading volume on Wednesday, after the aerospace company warned of weaker profit and fewer jet deliveries than expected.
While reporting a 2015 fourth quarter earnings and revenue beat before the market open, Boeing also noted that full-year 2016 earnings will likely be between $8.15 and $8.35 per share, short of analysts' projections for $9.43 per share.
The company expects full-year revenue to be between $93 billion and $95 billion, compared to analysts' estimates of $97.1 billion.
Boeing also warned that aircraft deliveries will probably decline year-over-year. The company expects commercial deliveries to drop between 740 and 745 during 2016, compared to 762 deliveries in 2015.
"We've seen this telegraphed in the marketplace, we know there is softness in widebody sales" of models such as the 777, George Ferguson, senior air transport analyst with Bloomberg Intelligence told Bloomberg. "Boeing may be smart here and decide it's not selling airplanes on the cheap. But that's not going to make investors feel any better today, because that hurts earnings."
Boeing was the worst performer of the 30 members of the Dow Jones Industrial Average today, with shares plunging as much as 10% in earlier trading.
About 27.86 million shares of Boeing were traded today, well above the company's average trading volume of roughly 4.60 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.
Boeing's strengths such as its revenue growth, notable return on equity, good cash flow from operations, growth in earnings per share and increase in net income outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: BA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.