Boeing Faces Tough Tides Ahead of Q3 Earnings Report

Boeing Co. BA is set to announce its third-quarter earnings on Wednesday before the market opens. Analysts anticipate a loss of $1.49 per share alongside quarterly revenue of $18.6 billion.

Investors Seek Signs of Recovery Amidst Turbulent Year

As earnings are about to be released, investors remain anxious about Boeing’s ability to recover from a rough year in which its stock has plummeted by 36.64% so far.

Challenges Continue to Weigh on Boeing

Boeing has faced significant challenges this year, mainly due to persistent production issues and delivery delays tied to its 737 MAX and 787 Dreamliner jets. Ongoing supply chain disruptions and quality control lapses have further strained the company, making it difficult to satisfy increasing demand from airlines.

An additional complication arises from a recent issue with the KC-46 tanker program, which has further rattled investor confidence regarding Boeing’s turnaround prospects.

The company’s struggles are apparent from its share price over the past year, which has seen an 11.88% decline.

Mixed Signals in Stock Performance

Boeing’s current stock price of $159.69 sits just below its 50-day moving average of $160.72, indicating a bearish trend, while it is well below the 200-day average of $181.02, suggesting continued long-term weakness.

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator stands at negative 0.80, hinting at downside momentum. Also, a Relative Strength Index (RSI) of 56.00 suggests Boeing stock may trend towards overbought territory, advising caution to investors.

A Glimmer of Hope: Short-Term Moving Averages

Despite the bearish outlook, there are positive signals. The eight-day simple moving average of $152.26 and the 20-day SMA of $153.43 both indicate a potential short-term buying opportunity, suggesting that Boeing’s stock may recover after recent selling pressures.

Critical Earnings Call Looms

As the earnings report approaches, investors will closely monitor Boeing’s production updates and any insights on addressing ongoing issues. Given the expectations of negative earnings, management’s future guidance on overcoming supply chain challenges will be pivotal.

Read Next:

Photo: Shutterstock