Chicago-based Boeing Co. (NYSE: BA) designs, manufactures and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles across the world. It also provides leasing and product support services.
Boeing’s offerings include the 737, 747, 767, 777 and 787 families of airplanes and the Business Jet range. It has a workforce of over 140,000 people in more than 66 countries, including the U.S.
Boeing is one of the largest aerospace manufacturers in the world and has customers in more than 150 nations. Nearly 50% of the world’s airplane fleet has been built by the company.
The airplane manufacturer is slated to announce its first-quarter results on April 27.
Q4 Results
Boeing had reported disappointing results in the fourth quarter of 2021. Revenues declined 3% year-over-year to $14.79 billion, coming in lower than analysts’ expectations of $16.86 billion.
Even though the company’s loss per share narrowed year-over-year to $7.69, it missed the Street’s loss estimate of $0.30 per share.
Q1 Projections
For the first quarter, the Street expects Boeing to report earnings of $0.02 per share and revenues of $16.41 billion.
Analyst’s Take
Ahead of the first-quarter results, Benchmark Co. analyst Josh Sullivan has maintained a Buy rating on the stock. Sullivan has lowered the price target to $250 from $270 (42.1% upside potential), citing inflation-related supply chain issues, delay in the delivery of 787 aircraft, China’s acceptance of 737 planes, and the impact of the COVID-19 pandemic on the supplier base.
“Boeing has several hurdles to work through in 2022/2023 on the supply side, but it is operating in a very strong demand environment as U.S. airlines are reporting a level of passenger air traffic demand not seen in decades,” Sullivan said.
Price Target
Based on 12 Buys and two Holds, Boeing has a Strong Buy consensus rating. BA’s average price target of $256.50 implies 45.8% upside potential from current levels. Shares have lost 27.1% over the past year.
Bloggers Bullish
TipRanks data shows that financial blogger opinions are 76% Bullish on Boeing, compared to the sector average of 68%.
Conclusion
Even after global travel resumed, following the easing of COVID-19 restrictions across the world, Boeing’s struggles continue. The delivery of the 787 Dreamliner aircraft has been pushed again, this time to the second half of the year, as the company conducts repairs and inspections of around 100 of these planes.
Another setback came in the form of several U.S. airlines grounding Boeing’s 777 planes in the first quarter after the engine of one of the planes failed shortly after taking off. These issues have shaken investors and flyers’ confidence. It remains to be seen how will this be reflected in the company’s results.
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