Will Boeing fight or fly headwinds in the first quarter?

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VSBoeing Co. (NYSE: BA) designs, manufactures and sells aircraft, rotorcraft, rockets, satellites, telecommunications equipment and missiles worldwide. It also provides rental and product support services.

Boeing’s offerings include the 737, 747, 767, 777 and 787 families of aircraft and the Business Jet family. It employs more than 140,000 people in more than 66 countries, including the United States

Boeing is one of the largest aerospace manufacturers in the world and has customers in more than 150 countries. Nearly 50% of the world’s aircraft fleet was built by the company.

The company is expected to announce its first quarter results on April 27.

Fourth quarter results

Boeing had announced disappointing results in the fourth quarter of 2021. Revenue fell 3% year-on-year to $14.79 billion, below analysts’ expectations of $16.86 billion.

Even though the company’s loss per share narrowed year-over-year to $7.69, it missed the street loss estimate of $0.30 per share.

First quarter forecast

For the first quarter, The Street expects the aircraft maker to report earnings of $0.02 per share and revenue of $16.41 billion.

Analyst’s point of view

Ahead of the first quarter results, Benchmark Co. analyst Josh Sullivan maintained a buy rating on the stock. Sullivan lowered the price target to $250 from $270 (upside potential of 42.1%), citing inflation-related supply chain issues, a delay in the delivery of 787 planes, the China’s acceptance of 737 aircraft and the impact of the COVID-19 pandemic on the supplier base.

“Boeing has several hurdles to overcome in 2022/2023 on the supply side, but it is operating in a very strong demand environment as US airlines report a level of demand for passenger air traffic not seen in decades.” , Sullivan said.

Price target

Based on 12 buys and two takes, Boeing has a strong buy consensus rating. BA’s average price target of $256.50 implies upside potential of 45.8% from current levels. Stocks have lost 27.1% over the past year.

Bloggers are optimistic

Data from TipRanks shows that financial blogger reviews are 76% bullish on Boeing, compared to the industry average of 68%.

Conclusion

Even after global travel resumes, following the easing of COVID-19 restrictions around the world, Boeing’s struggles continue. Delivery of the 787 Dreamliner planes has been pushed back again, this time to the second half, as the company is carrying out repairs and inspections of about 100 of these planes.

Another setback came in the form of several US airlines grounding Boeing 777s in the first quarter after one of the planes’ engine failed shortly after takeoff. These issues have shaken the confidence of investors and broadcasters. It remains to be seen how this will be reflected in the company’s results.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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