Boeing (BA) is set to report its third-quarter earnings on Wednesday, with a new financial deal with key supplier Spirit AeroSystems (SPR) expected to impact its cash flow. Despite hitting a 2023 low on Monday, Boeing stock saw a slight increase on Tuesday.
X
Boeing Earnings Woes
Estimates: According to FactSet, analysts predict that Boeing’s net loss per share will decrease from $6.18 to $3.18 compared to the previous year. This will mark the ninth consecutive quarterly loss. The company’s last reported earnings were in Q2 2021, and it is expected to do so again in the current fourth quarter.
Revenue is expected to grow by almost 13% year over year, reaching $18.013 billion. This will be the third consecutive quarter with slowing revenue gains.
Boeing has already reported Q3 deliveries of 105 commercial planes and 28 defense jets. In addition, the company received orders for 224 planes in September, up from 45 orders in August, indicating a recovery in commercial air travel.
Results: Check back on Wednesday before the market opens.
Outlook: Wall Street expects $4.67 billion in cash flow from operations for the full year, falling near the low end of Boeing’s guidance range of $4.5 billion to $6.5 billion. Analysts anticipate $3.35 billion in free cash flow, while the company’s guidance is $3 billion to $5 billion.
Boeing Stock
Boeing shares rose by 0.7% to 1822.22 during Tuesday’s stock market activity. Although it reached a 2023 low on Monday, the stock managed to close higher. It is currently trading well below the 10-week and 40-week moving averages, as shown on the MarketSmith chart. BA stock does not currently have a buy point after its unsuccessful breakout in July.
Boeing’s Millions To Support Spirit
Spirit AeroSystems, the fuselage supplier for Boeing’s 737 and 787 programs, has experienced quality defects this year, impacting the company’s operations. This includes misdrilled holes in the 737, Boeing’s bestselling jet.
Despite this, Bernstein analysts have cut Boeing’s price target to $270 from $274, while upgrading Spirit stock to outperform.
The firm expects 396 deliveries of the 737 in 2023, which is below the low end of the company’s guidance of 400-450 deliveries. Bernstein analysts also highlighted a recent financial agreement between Boeing and Spirit AeroSystems.
In order to stabilize jet production, Boeing will provide $100 million upfront to its troubled supplier. However, Vertical Research analysts believe that this money will come from Boeing’s cash flow, a closely watched metric on Wall Street.
Despite an increase in orders, Boeing stock has dropped nearly 25% below its 52-week high in July and has lost key support levels.
Spirit AeroSystems recently fired its CEO Tom Gentile and replaced him with former Boeing executive Pat Shanahan. The company is scheduled to report its earnings on November 1, before the market opens.
SPR stock increased by 0.6% to 22.07 on Tuesday. Its shares hit a three-year low of 14.65 last month.
YOU MAY ALSO LIKE:
These Are The 5 Best Stocks To Buy And Watch Now
Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks
Find The Latest Stocks Hitting Buy Zones With MarketSmith
Why This IBD Tool Simplifies The Search For Top Stocks
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
