Boeing Company (NYSE:BA) will release its first quarter financial results on Wednesday, April 26th. Ahead of its Q1 print, Credit Suisse revised its loss forecast for the company. It now expects the aerospace company to report a loss of $2 per share in 2023, compared to its earlier forecast of a loss per share of $1.71. Credit Suisse has a Hold rating on BA stock.
While Credit Suisse increased its loss forecast for 2023, it expects Boeing to return to profitability in 2024 and 2025 due to the robust demand environment. For 2024, Credit Suisse raised its EPS forecast to $3.92 from $3.58. Further, it expects BA to post earnings of $9.32 per share in 2025, up from its previous projection of $9.20.
In the near-term, supply-chain headwinds and labor instability, particularly in its Defense, Space & Security segment, will likely remain a drag on its profitability.
For Q1, analysts expect Boeing to post revenue of $17.67 billion. Meanwhile, analysts expect the company to report a loss of $0.85 a share in the first quarter, compared to a loss of $2.75 in the prior-year quarter.
What’s the Prediction for Boeing Stock?
While Boeing faces short-term margin headwinds, the demand environment remains strong. Boeing’s deliveries jumped in 2022, reflecting a recovery in airline travel and an expansion of the defense budget amid the Russia/Ukraine crisis.
The sustained growth will likely continue in the coming years, led by a further recovery in the airline sector. Furthermore, BA’s solid backlog implies solid growth ahead. Also, the company is focusing on restoring the production of its 737 Max jet, which is positive.
Boeing stock has received 11 Buy, five Hold, and one Sell recommendations for a Moderate Buy consensus rating. At the same time, analysts’ average price target of $231.12 implies 9.65% upside potential.
