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The Boeing Company (BA), incorporated in 1916, has become a titan in aerospace and defense. Headquartered in Arlington, Virginia, Boeing, with iconic jets like the 737, 747, 777, and the 787 Dreamliner, dominate the skies. Catering to commercial airlines and powerhouse clients like the U.S. Department of Defense and NASA, Boeing's influence stretches across more than 150 countries.
From sleek jetliners to groundbreaking satellites, Boeing remains a cornerstone in aviation, boasting a market cap of $95.2 billion. The company is set to release its Q3 2024 earnings on Wednesday, Oct. 23.
Ahead of the event, analysts expect Boeing’s loss to narrow by 74.2% year over year to $0.84 per share. The company has surpassed Wall Street’s EPS estimates in two of the previous four quarters while missing on two other occasions. Its adjusted loss per share for the last reported quarter widened 253.7% year over year to $2.90, missing the consensus estimates by 62%.
For fiscal 2024, analysts expect Boeing's loss to decline 18.1% year over year to $4.76 per share from $5.81 per share in fiscal 2023. In fiscal 2025, analysts expect a turnaround, with Boeing landing a profit of $3.18 per share.
BA stock has plunged 40.5% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 20.6% returns and the Industrial Select Sector SPDR Fund’s (XLI) 18.9% gains during the same time frame.
Boeing’s struggle to keep pace with the broader market is a tale of turbulence. Massive cash burns, ongoing setbacks with the 737 Max and 787 Dreamliners, and quality control issues have kept the aerospace giant grounded. Add in component shortages and regulatory hurdles from an FAA directive, and Boeing faces a perfect storm. Each of these challenges has clipped its wings, leaving the company fighting to regain altitude in a market moving ahead.
In September, Boeing took another hit, dropping 12.5%, as labor strikes erupted after failing to strike a deal with the International Association of Machinists and Aerospace Workers. The timing couldn't be worse, as Boeing was gearing up to ramp up production of its 737 jets.
Despite facing defense sector challenges and a rocky short-term outlook, Boeing's solid order backlog and fresh leadership keep Wall Street cautiously optimistic. The stock holds a “Moderate Buy” consensus from 24 analysts, with 16 pushing for a “Strong Buy,” one recommending a “Moderate Buy,” five suggesting a “Hold,” and two leaning toward a “Strong Sell.” While it is not all smooth sailing, the long-term potential keeps Boeing in the game.
The mean price target of $208.33 suggests an upside potential of 34.4% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
