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Boeing (NYSE:BA) is set to post second quarter results on Tuesday, before markets open.
The Virginia-based company is expected to post EPS of -$1.31 on revenue of $21.72 billion, implying a rise of nearly 29% during the quarter.
The plane maker, in April, reported a narrower loss, with Chief Executive Kelly Ortberg attributing this to the effectiveness of Boeing’s recovery plan. This came as concerns on how the ongoing tariff could affect the company’s dealings in other countries, including China, started to escalate. However, the easing trade tensions with China came as positive news to investors.
The company, which came under scrutiny after a tragic Air India crash in June, delivered three 737-8 Max aircraft to Chinese carriers this month valued in the hundreds of millions of dollars, highlighting thaw in geopolitical friction.
“With the naming of Kelly Ortberg as the new CEO, and a Presidential Administration that wants to see American companies succeed within the global industrial complex, the significant black cloud that has surrounded Boeing has begun to lift,” pointed out Seeking Alpha analyst Brian Gilmartin.
Another Seeking Alpha analysis also said that the company is “very well-positioned to benefit” from a secular growth market in the aviation industry, rising defense spending, and favorable U.S. trade and manufacturing policies.
Recently, under a new trade deal, President Trump significantly reduced tariff on Indonesia and in return, Indonesia has agreed to remove all duties on American imports and purchase more than $19 billion worth of U.S. goods, including 50 Boeing jets.
Over the last two years, Boeing has beaten EPS estimates 50% of the time and has beaten revenue estimates 38% of the time.
Seeking Alpha analysts and Wall Street are bullish and rated the stock a Buy. In contrast, Seeking Alpha’s Quant ratings consider it a Hold.
Over the last three months, EPS estimates have seen one upward revision, compared to 15 downward revisions, while revenue estimates have been revised upwards 17 times versus one downward move.
The stock has risen 32% so far this year, outperforming the over 8% rise in the broader S&P 500 Index.