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: Stocks Are Mixed Before Liberation DayMarkets are getting into the freewheeling rhythm of a second Trump administration.
-
How to Invest in SportsIf it's springtime, Forbes is out with its annual list of baseball franchise values. The billions involved might make you wonder how to invest in sports.
-
Stock Market Today: Stocks Are Mixed Before Liberation DayMarkets are getting into the freewheeling rhythm of a second Trump administration.
-
How to Invest in SportsIf it's springtime, Forbes is out with its annual list of baseball franchise values. The billions involved might make you wonder how to invest in sports.
-
Winning Strategies for Financial Advisers as Clients' Lives EvolveHow can the wealth management industry help make life transitions easier for the adviser and the client?
-
How Advisers Can Establish Relationships With HNW ProspectsThese strategies can help to build influence with high-net-worth individuals, who are often looking to an adviser for insight rather than solutions.
-
When Your Car Is Fixed, But You've Still Got the ProblemThis reader's experience with trying to get squealing brakes fixed under an extended warranty mirrors what others are experiencing these days.
-
Stock Market Today: Dow Rises 854 Points From Its Intraday LowIf there's one thing markets hate, it's uncertainty. But uncertainty is all they're getting these days.
-
Seven Questions to Ask When Evaluating Personal Loan OptionsTaking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
-
How Much Does Being Rich Matter in Retirement?After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
