Boeing (NYSE:BA) will release its Q1 2024 financial results on Wednesday, April 24. The leading manufacturer of commercial airplanes, defense products, and space systems witnessed a significant drop in deliveries in Q1, which could potentially hurt both BA’s top and bottom lines.
It’s worth highlighting that Boeing stock has dropped 34.6% year-to-date and is among the worst-performing S&P 500 (SPX) shares. The uncertainties related to Federal Aviation Administration (FAA) investigations and management changes, production challenges, and lower deliveries have weighed heavily on its stock performance.
Boeing – Q1 Expectations
Analysts expect Boeing to post revenue of $16.24 billion in Q1, down about 9% from $17.92 billion in the prior-year quarter. Lower volumes driven by a decrease in deliveries could adversely impact BA’s top line in Q1. Its commercial airplane deliveries were 83 in Q1 of 2024, down from 130 in the prior year quarter.
Analysts expect Boeing to post a loss of $1.63 per share in the first quarter due to lower revenue and higher costs. Further, its losses are likely to expand compared to the prior-year quarter loss of $1.27.
Is Boeing Stock a Buy or Sell?
Boeing stock lost notable value year-to-date. However, the ongoing challenges and concerns over future cash flow uncertainties keep analysts cautiously optimistic about its prospects. It has 17 Buys, six Hold, and two Sell recommendations for a Moderate Buy consensus rating.
Analysts’ average BA stock price target of $230.56 implies 35.24% upside potential from current levels.
Insights from Options Trading Activity
It’s worth noting that options traders are pricing in a +/- 5.19% move on earnings, almost in line with the previous quarter’s earnings-related move of 5.29%.
The expected move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.
Learn more about TipRanks’ Options tool here.
Bottom Line
Boeing’s top line could decline from lower Q1 deliveries. Further, its losses are expected to widen amid challenges. However, BA stock has lost significant value. Consequently, analysts’ average price target shows notable upside potential from current levels.
