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
-
Investing Abroad Could Pay Off — Here's HowCountries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Retire in Belize for Stunning Natural Beauty and CultureBelize offers miles of protected land and ocean, a rich mix of cultures and a chill lifestyle. Best yet — the income requirement is just $2K per month.
-
Why Investing Abroad Could Pay Off
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Are These the Next Stocks to Split?Interactive Brokers' recently split its stock to makes its shares more accessible to investors. Could these high-priced stocks be next?
-
Your Home + Your IRA = Your Long-Term Care SolutionIf you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a RecessionRecessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income PlanningOnce you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade TalksDespite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Why Smart Retirees Are Ditching Traditional Financial PlansFinancial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around YouWhile thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.
