The Boeing Co. (NYSE: $BA) is an aerospace company that makes commercial jetliners and space, defense, and security systems. It is heavily involved in developing, producing, and marketing commercial jet aircraft, including fleet support services for the commercial airline sector. Here is a closer look at recent Boeing Stock performance.
Boeing Earnings Reports
In its last earnings report for fiscal Q2 ending June, the company topped analysts’ expectations thanks to increased commercial plane deliveries. Additionally, the company reported an increase in aircraft production. However, the company still had losses in the space and defense divisions.
In Q2, the company reported $2.6 billion in free cash flow, greater than analysts’ forecasts. Boeing’s full-year guidance for free cash flow was $3-$5 billion in Q2.
The Q2 report showed a revenue increase of 18% from the same period last year to $19.75 billion. However, the company still had a net loss of $14 million, 25 cents per share. This is as opposed to a net profit of $160 million, 32 cents per share a year ago. The losses in Q2 were attributed to costs in the defense and space divisions.
On an adjusted basis, its Q2 losses were $390 million, 82 cents per share. The losses in the defense, space, and security units were $527 million, compared to an operating profit of $71 million the previous year. According to the report, the company lost $257 million to the delayed launch of the crewed Starliner spacecraft, a $189 million loss due to increased production costs for the T-7A trainer, and a $68 million loss due to delayed production of the MQ-25 program.
Problems with Aircraft Production
Boeing and Airbus, its main rival, have struggled to ramp up aircraft production since the COVID pandemic. It has resulted in longer wait times for new jets as travel demand rises post-COVID. In Q2, the company delivered 136 planes, a marked increase from the 121 delivered in the same period last year.
The Boeing Co. Q2 report stated that the company was increasing production of its Max aircraft to 36 jets per month, up from 31 a month. According to the report, the company forecast 400-450 deliveries of its 737 aircraft.
Ahead of the release of the fiscal Q3 report on October 25, 2023, the company released delivery numbers for Q3 for its aircraft unit. According to the report, the company had a drop in deliveries for its bestselling 737 MAX due to ongoing defect-correction efforts. The figure is currently at its lowest since August 2021, at the height of COVID.
Despite the drop, Boeing reported increased orders to 224 planes, offset by 10 cancellations. The day the report was released, its share price rose 2%. As of 11:38 AM EDT, its shares were up 1.59% at 196.61 per share.
Investors keep a close eye on delivery numbers, as Boeing receives most of its payment when the customer receives the plane. Since the start of 2023, Boeing has delivered 371 planes. In comparison, its main rival, Airbus, has delivered 4888 planes in the same period.
Boeing Stock Forecast
The EPS forecast for Boeing Co. for fiscal Q3 is -$3.19, ranging from -$3.62 to -$2.98. Its previous EPS was -$0.82, the first time it had beaten analysts’ forecasts in the past four quarters. The 25% rate is lower than the industry average of 65.38% in the same period. In the past calendar year, BA stock has underperformed the overall industry.
However, on Tuesday, October 10, 2023, the stock performed better than the overall market, representing a third consecutive day of gains.
On the close of trading on Tuesday, the stock was $49.57 short of its 52-week high of $243.10, which it achieved on August 1, 2023. Trading volume significantly exceeded its 50-day moving average of 4.6 million at 8 million shares.
Analysts Give BA A Consensus Buy Rating
BA has a current Buy rating from analysts. The average price target by analysts for the past three months is $ 252.75. On the high end, they predict $310; on the low end, they forecast $204. Its average price target represents a 28.83% increase from the current price of 196.61.
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