Aerospace and defense company Boeing (NYSE:BA) will be reporting earnings tomorrow before market hours. Here’s what to look for.
Boeing missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $17.84 billion, down 1.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Boeing a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Boeing’s revenue to decline 31.1% year on year to $15.18 billion, a reversal from the 10.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$2.93 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Boeing has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Boeing’s peers in the aerospace segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 25.8%, beating analysts’ expectations by 4.9%, and Hexcel reported revenues up 3.6%, falling short of estimates by 0.7%. AAR traded up 8.6% following the results while Hexcel was also up 3.2%.
Read our full analysis of AAR’s results here and Hexcel’s results here.
There has been positive sentiment among investors in the aerospace segment, with share prices up 4.9% on average over the last month. Boeing’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $185.63 (compared to the current share price of $176.06).
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