Boeing (BA) stock is sharply higher in Tuesday's session despite the aerospace giant missing top- and bottom-line expectations for its fourth quarter.
In the three months ending December 31, Boeing's revenue decreased 30.8% year over year to $15.2 billion. Its net loss per share widened to $5.90 from 47 cents in the year-ago period.
"We made progress on key areas to stabilize our operations during the quarter and continued to strengthen important aspects of our safety and quality plan," said Boeing CEO Kelly Ortberg in a statement. "My team and I are focused on making the fundamental changes needed to fully recover our company's performance and restore trust with our customers, employees, suppliers, investors, regulators and all others who are counting on us."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results came up well short of analysts' expectations. Wall Street was anticipating revenue of $16.2 billion and a net loss of $3 per share, according to CNBC. However, Boeing's prerelease of the results last week took some of the sting out of the miss.
Additionally, Ortberg took to CNBC's "Squawk on the Street" to say he expects Boeing to be cash flow positive in the secxond half of this year.
Boeing's results also revealed that the company ended the quarter with a backlog of $521.3 billion, including more than 5,500 commercial planes valued at approximately $435 billion, and $26.3 billion in cash and marketable securities.
Is Boeing stock a buy, sell or hold?
Boeing's struggles on the price charts have been well-documented, with shares down 32% year over year heading into Tuesday's trading. Yet, Wall Street is betting on a comeback for the Dow Jones stock.
According to S&P Global Market Intelligence, the average analyst target price for BA stock is $186.26, representing implied upside of about 5% to the January 27 close. Additionally, the consensus recommendation is Buy.
Financial services firm Jefferies is one of those firms with a Buy rating on the large-cap stock, along with a $205 price target.
"Under new leadership, BA's turnaround is dependent on fixing the engineering culture, stabilizing the production systems, and executing with greater discipline," wrote Jefferies analyst Sheila Kahyaoglu in a January 23 note. "Free cash flow continues to be a usage for full-year 2025, with a capital raise required to backfill minimum operating levels, prefund debt repayments, and build a buffer for continued choppiness."
Related Content
-
Stock Market Today: Dow Adds 485 Points After Trump's Tariff DelayThe White House said it will postpone tariffs on automotive imports from Canada and Mexico for one month.
-
Why Abolishing Florida Property Taxes is ProblematicProperty Taxes A bold proposal that aims to eliminate property taxes in the Sunshine State has roused concerns from economists, and rightly so.
-
Stock Market Today: Dow Adds 485 Points After Trump's Tariff DelayThe White House said it will postpone tariffs on automotive imports from Canada and Mexico for one month.
-
10 Ways to Refine Your Financial Plan for a More Secure FutureSignificant benefits throughout the rest of the year can be had if you take some time now to revisit your financial plan and adjust accordingly.
-
The Most Important Number for a Business Owner Considering a SaleCompany owners hoping to sell and stop working won't know whether an offer on their business is good enough unless they know their 'wealth gap.'Evan
-
Stock Market Today: Dow Drops 670 Points on Trade War EffectA prodigious rally by the battered leader of the AI revolution typified an increasingly volatile picture for investors, traders and speculators.
-
Dividing an Estate? Five Ways to Create TransparencyLetting your children know your intentions while you're still around to explain your reasoning, and while you can make adjustments, can limit discontent later.
-
College Grads: This Is What Hiring Managers Are Thinking (But Won't Admit)Hiring managers share the attitudes, questions and other issues that could turn off an interviewer — and some of these things they would never admit if asked.
-
Stock Market Today: Markets Count Down to Tariff DayInvestors, traders and speculators stand by for updates from Washington, D.C., on new terms of global trade.
-
Why ETFs Are a Great Bet for the Trump PresidencyStock market volatility has picked up since Inauguration Day. These ETFs can help investors can navigate the ups and down.
