Boeing Faces Major Losses Ahead of Q4 Earnings Report
Boeing, based in Arlington, Virginia, is a leading defense contractor and manufacturer of jet aircraft. The company serves clients including U.S. airlines, the Department of Defense, NASA, and various government agencies. Currently, its market capitalization is $105.6 billion. Boeing is set to announce its fiscal 2024 Q4 earnings before the stock market opens on Wednesday, January 29.
Analysts Predict Significant Losses
As the earnings report approaches, analysts predict that Boeing will experience a substantial loss of $2.25 per share for the fourth quarter, reflecting a 378.7% increase in losses year over year. In recent quarters, Boeing has met Wall Street’s earnings per share (EPS) expectations in two out of four instances but fell short in the other two.
Projected Losses for Fiscal 2024
For the full fiscal year, analysts estimate that losses will rise by 182.4%, bringing EPS down to $16.41 compared to $5.81 per share in fiscal 2023.
Boeing’s Stock Performance Over the Past Year
Over the last 52 weeks, BA stock has dropped 31.4%, significantly trailing behind the S&P 500 Index’s gains of 27.2% and the Industrial Select Sector SPDR Fund’s (XLI) increase of 18.9% in the same period.
Impact of Recent Safety Concerns
On December 30, Boeing shares fell more than 2% after a tragic accident involving a 737-800 aircraft operated by a South Korean airline at Muan International Airport. This incident heightened worries about the safety of Boeing’s 737 series, which has already faced scrutiny due to past issues linked to the 737 MAX model.
Market Sentiment and Future Projections
According to 25 analysts, BA stock holds a “Moderate Buy” consensus. This includes 15 “Strong Buy” recommendations, one “Moderate Buy,” eight “Hold” suggestions, and one “Strong Sell.” The average price target for Boeing shares stands at $189.21, indicating a potential upside of 10.8% from current levels.
On the date of publication,
Kritika Sarmah
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
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