Boeing (NYSE:BA) Sets New 52-Week Low on Disappointing Earnings

Key Points

• Boeing shares fell to a new 52-week low after the company reported an adjusted loss of $0.34 per share, missing the $0.25 expected loss, despite revenue rising 3.9% year over year to $24.19 billion.
• Commercial Airplanes remained a major weakness, posting a $697 million operating loss and a negative 6.5% margin amid delivery-mix issues, production changes and elevated supply-chain costs.
• Boeing showed signs of turnaround progress, including $1.5 billion in operating cash flow, $500 million in free cash flow and a record $745 billion backlog. Analysts nonetheless maintain a consensus “Moderate Buy” rating with a $266.96 target price.

The Boeing Company (NYSE:BA - Get Free Report) hit a new 52-week low during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $172.30 and last traded at $170.5920, with a volume of 10,622,340 shares. The stock had previously closed at $188.31.

The aircraft producer reported ($0.34) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.09). The company had revenue of $24.19 billion during the quarter, compared to analysts' expectations of $23.95 billion. Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. The company's revenue for the quarter was up 3.9% compared to the same quarter last year. During the same quarter last year, the business posted ($7.47) earnings per share.

Trending Headlines about Boeing

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Boeing reported $1.5 billion in operating cash flow and $500 million in free cash flow, signaling progress in its turnaround and liquidity efforts. Boeing Reports Third Quarter Results
• Positive Sentiment: Total backlog reached a record $745 billion, including more than 6,300 commercial aircraft. Boeing also delivered certification milestones for the 737-7 and 737-10 and was selected by the U.S. Navy for the F/A-XX fighter program. Boeing Reports Third-Quarter Results
• Positive Sentiment: Defense, Space & Security revenue increased 15% to $7.9 billion, with a 6.2% operating margin, while Global Services revenue rose 4% to $5.6 billion and maintained an 18.3% margin. Boeing Q3 Results Analysis
• Neutral Sentiment: Revenue increased 3.9% year over year to approximately $24.2 billion, but the improvement was not enough to satisfy investors because earnings remained below expectations. Boeing Earnings Show Progress
• Negative Sentiment: Boeing posted a $116 million GAAP net loss, or $0.26 per share, and an adjusted loss of $0.34 per share versus an expected loss of roughly $0.25. The earnings miss was the main immediate pressure on BA. Boeing Reports Q3 Loss
• Negative Sentiment: Commercial Airplanes recorded a $697 million operating loss and a negative 6.5% margin. A weaker delivery mix, higher projected costs from production-rate changes and elevated supply-chain expenses raised doubts about the pace and profitability of the jetliner recovery. Boeing Jetliner Production Challenges

Wall Street Analyst Weigh In

Several analysts have recently weighed in on BA shares. BNP Paribas Exane raised shares of Boeing from an "underperform" rating to an "outperform" rating and lifted their target price for the company from $230.00 to $300.00 in a report on Monday, August 3rd. DZ Bank reiterated a "buy" rating on shares of Boeing in a research report on Thursday, August 6th. Wolfe Research raised Boeing from a "hold" rating to a "strong-buy" rating in a research note on Thursday, September 24th. Sanford C. Bernstein restated an "outperform" rating on shares of Boeing in a research note on Monday. Finally, Bank of America restated a "buy" rating and issued a $270.00 price target on shares of Boeing in a research note on Friday, September 18th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have assigned a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, Boeing has a consensus rating of "Moderate Buy" and a consensus target price of $266.96.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Highland Investment Advisors LLC acquired a new stake in shares of Boeing in the 2nd quarter worth approximately $26,000. Strategic Wealth Advisors LLC purchased a new stake in Boeing during the second quarter worth $27,000. Bell Investment Advisors Inc purchased a new stake in Boeing during the second quarter worth $29,000. Security National Bank of SO Dak acquired a new stake in Boeing in the second quarter valued at $30,000. Finally, Retirement Wealth Solutions LLC grew its holdings in Boeing by 3,575.0% in the third quarter. Retirement Wealth Solutions LLC now owns 147 shares of the aircraft producer's stock valued at $27,000 after purchasing an additional 143 shares during the last quarter. 64.82% of the stock is currently owned by institutional investors and hedge funds.

Boeing Price Performance

The company has a market cap of $134.33 billion, a price-to-earnings ratio of 73.45 and a beta of 1.26. The company has a fifty day simple moving average of $201.13 and a two-hundred day simple moving average of $218.67. The company has a quick ratio of 0.33, a current ratio of 1.14 and a debt-to-equity ratio of 6.77.

About Boeing

The Boeing Company NYSE: BA is a global aerospace company that designs, manufactures and supports commercial airplanes, military aircraft, satellites, space systems and related products and services. Its offerings serve airlines, government agencies, defense organizations and other customers worldwide.

Boeing operates through three principal business areas: Commercial Airplanes, which develops and produces passenger and cargo aircraft; Defense, Space & Security, which provides military aircraft, weapons systems, satellites and space-related platforms; and Global Services, which offers parts, maintenance, training, engineering and other lifecycle support.

Founded in 1916 by William Boeing, the company has grown into one of the world's major aerospace manufacturers.

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