Boeing (BA) is set to post fourth quarter results on Tuesday, before markets close.
Wall Street expects the Virginia-based company to post EPS of -$0.39 on revenue of $22.84 billion, implying a rise of nearly 50% during the quarter.
The plane maker, in October, posted a wider-than-expected quarterly loss and confirmed another delay for its 777X widebody jet, which is now expected to reach customers in 2027. However, analysts said the industrial and defense giant has made progress in stabilizing production on its 737 and 787 programs.
UBS analysis that tracks Dreamlifter cargo flights as a leading indicator of aircraft assembly activity in January said Boeing’s 787 production appears to be gaining momentum after a seasonal holiday slowdown.
Seeking Alpha analysts and Wall Street are bullish and rated the stock a Buy.
“With the Spirit AeroSystems acquisition completed and production recovering, investor focus is expected to shift toward 777X certification and the pace of free cash flow improvement over the next several years,” said Susquehanna, adding that U.S. aerospace and defense companies are entering the fourth quarter earnings season with favorable fundamentals across commercial aviation, defense, and aftermarket services.
Despite the improvement, Seeking Alpha’s Quant ratings consider the stock a Hold.
“BA’s defense and services segments show margin improvement and stability, yet commercial aircraft remains a significant risk due to execution challenges and contract legacy issues,” argued Seeking Alpha analyst Kenio Fontes.
Over the last two years, Boeing has beaten both revenue and EPS estimates 50% of the time. Over the last three months, EPS estimates have seen one upward revision, compared to15 downward revisions, while revenue estimates have been revised upwards eight times versus12 downward moves.
The stock has grown over 26% last year, outperforming the nearly 17% rise in the broader S&P 500 Index.