U.S. plane maker Boeing (BA) is gearing up to release its fourth-quarter 2024 earnings on January 28. In its preliminary results announced yesterday, the company cautioned investors that it recorded lower revenue and incurred larger-than-expected losses, surpassing Wall Street’s projections.
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The news caused Boeing’s share price to drop by 3.5% in after-hours trading. However, the stock rebounded later, rising by 2% and closing at $178.50.
Boeing Expects $4 Billion Loss in Q4
Boeing revealed that it expects a quarterly loss of $5.46 per share, which equates to about $4 billion, a much bigger hit than analysts had projected. Meanwhile, it expects revenues to be around $15.2 billion, far below the Wall Street’s forecast of $16.6 billion. Additionally, Boeing is preparing for a negative cash flow of $3.5 billion during this period.
This substantial deficit is attributed to a combination of factors, including prolonged strikes, challenges within defense projects, and the financial impact of significant workforce reductions.
Options Traders Anticipate a 5.55% Move
TipRanks’ Options tool offers a quick way to gauge what options traders anticipate from the stock following its earnings report. The expected earnings move is calculated using the at-the-money straddle of the options set to expire closest to the announcement. While this may sound complex, the tool handles the calculations for you.
Currently, it indicates that options traders are predicting a 5.55% swing in either direction.
Is Boeing a Buy, Sell, or Hold?
Turning to Wall Street, Boeing stock has a Moderate Buy consensus rating based on 15 Buys, five Holds, and one Sell assigned in the last three months. At $196.21, the average BA price target implies 9.92% upside potential.
