Boeing signaled a jet production and delivery recovery early Tuesday after preannouncing a dismal final quarter of 2024. Boeing stock briefly cleared a buy point, among the session's leaders on the Dow Jones Industrial Average.
Boeing Earnings And Outlook
For Q4, Boeing widened losses to $5.90 per share from a loss of 47 cents a year ago. The Dow Jones aerospace company had already warned last Thursday that Q4 results would be worse than the $3.25 loss that analysts were expecting. Revenue plunged almost 31%, year over year, to $15.242 billion, slightly missing views, according to FactSet.
Boeing's fourth quarter took a hit from a roughly two-month machinist strike, which led to delivery delays. Customers typically make most of their payments after receiving jet orders. As a result, Boeing reported a $3.5 billion cash burn for the quarter.
But new Boeing CEO Kelly Ortberg on Tuesday highlighted progress on the company's recovery, including "important steps" to stabilize its jet-making business and improve the balance sheet by raising capital.
"We also restarted 737, 767 and 777/777X production," Ortberg said in the Boeing earnings release. The Dow giant now expects deliveries of the 737 Max, its troubled flagship narrow-body jet, to reach the "upper 30s" in January, up from 17 last month.
Further, Boeing anticipates turning cash flow positive in the second half of 2025. It burned through more than $14 billion last year.
For 2025, analysts now project EPS of $1.02, FactSet shows. That would follow a net loss of $20.38 per share in 2024. It would also represent the first annual profit since 2018.
Boeing Stock Flirts With Buy Point
Shares of Boeing jumped 1.5% to 177.78 in Tuesday's stock market trading, paring gains. Intraday Boeing stock topped a cup-with-handle buy point of 182.57, according to MarketSurge charts.
The relative strength line for BA stock is improving with a longer-term downtrend.
Among other aerospace and defense stocks, Lockheed Martin plunged on an earnings miss. RTX, a Boeing jet-engine supplier and fellow Dow Jones component, rose on an earnings beat. RTX stock briefly topped a 128.70 buy point.
GE Aerospace, another Boeing and Airbus supplier, retreated for a third straight day. So did RocketLab.
GE stock broke out on earnings last week but has fallen slightly below its buy point. RocketLab, an IBD 50 top growth stock, recently found support at a sharply rising 50-day moving average.
Airbus stock rose on Tuesday, in buy range of a 42.01 cup-with-handle buy point.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
