Boeing (NYSE:BA) will release its fourth-quarter financial results on Wednesday, January 31. The company’s top line is expected to benefit from higher commercial airplane volumes, but its bottom line may continue to remain under pressure due to higher costs.
Boeing is one of the leading manufacturers of commercial airplanes, defense products, and space systems.
Boeing – Q4 Expectations
Analysts expect Boeing to post revenue of $21.18 billion in Q4, up from $19.98 billion in the prior-year quarter. Higher volumes driven by an increase in deliveries could drive its top line in Q4.
Analysts expect Boeing to post a loss of $0.81 per share in the fourth quarter due to the higher manufacturing costs. However, its losses are likely to reduce compared to the prior-year quarter loss of $1.75.
Is Boeing Expected to Go Up?
Boeing stock has underperformed the broader markets and is down about 2% in one year. Further, the challenges stemming from the Federal Aviation Administration’s restriction on Boeing’s production expansion of the MAX planes will likely remain a drag.
Given the challenges, Wall Street analysts are cautiously optimistic about BA’s prospects. It has 17 Buy and six Hold recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $270.58 implies 31.87% upside potential from current levels.
Insights from Options Trading Activity
It’s worth noting that options traders are pricing in a +/- 4.66% move on earnings, higher than the previous quarter’s earnings-related move of -2.54%.
The expected move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement. Learn more about TipRanks’ Options tool here.
Bottom Line
While Boeing’s top line could continue to benefit from favorable commercial volume and mix, its bottom line may continue to face challenges in the fourth quarter. However, analysts’ average price target shows notable upside potential from current levels.
