Boeing (NYSE:BA) Stock Price Down 10.7% Following Weak Earnings

The Boeing Company (NYSE:BA)’s stock price dropped 10.7% on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $167.41 and last traded at $168.0870. 46,898,449 shares changed hands during mid-day trading, an increase of 569% from the average daily volume of 7,010,134 shares. The stock had previously closed at $188.31.

The aircraft producer reported ($0.34) EPS for the quarter, missing analysts’ consensus estimates of ($0.25) by ($0.09). Boeing had a negative return on equity of 346.82% and a net margin of 2.41%. The company had revenue of $24.19 billion during the quarter, compared to analyst estimates of $23.95 billion. During the same quarter in the previous year, the business posted ($7.47) earnings per share. The company’s revenue for the quarter was up 3.9% compared to the same quarter last year.

Key Headlines Impacting Boeing

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Boeing reported $24.2 billion in third-quarter revenue, up about 4% year over year, while its net loss narrowed substantially from the prior-year period. Operating cash flow reached $1.5 billion and free cash flow was approximately $0.5 billion. Boeing Reports Third Quarter Results
• Positive Sentiment: Total backlog grew to a record $745 billion, including more than 6,300 commercial aircraft. Boeing also cited 737-7 and 737-10 certification milestones, a U.S. Navy F/A-XX fighter award and stronger defense and services performance. Boeing Reports Third-Quarter Results
• Neutral Sentiment: Management said financial uncertainty is narrowing and still expects to begin delivering 777-9 aircraft next year, but the recovery timeline depends on resolving production and supply-chain constraints. Boeing CEO Comments on Third-Quarter Results
• Negative Sentiment: Boeing cut its 737 MAX delivery target for the year and now expects production to reach 52 aircraft per month only in the second half of next year. The delay casts doubt on the timing of its turnaround and cash-generation plans. Boeing Cuts Delivery Target
• Negative Sentiment: The commercial-airplane division posted a $697 million operating loss, with margins pressured by higher production-related costs, supply-chain expenses and an unfavorable delivery mix. Adjusted loss per share of $0.34 missed analyst expectations. Boeing Jetliner Production Challenges

Wall Street Analyst Weigh In

A number of equities research analysts have commented on BA shares. Tigress Financial raised their price objective on Boeing from $295.00 to $305.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. UBS Group reaffirmed a “buy” rating on shares of Boeing in a research report on Tuesday, September 29th. Barclays started coverage on Boeing in a research report on Friday, October 9th. They set an “overweight” rating and a $300.00 target price on the stock. Sanford C. Bernstein reiterated an “outperform” rating on shares of Boeing in a report on Monday. Finally, The Goldman Sachs Group downgraded shares of Boeing from a “buy” rating to a “hold” rating in a research report on Tuesday, August 11th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $266.96.

Hedge Funds Weigh In On Boeing

Hedge funds have recently added to or reduced their stakes in the stock. Highland Investment Advisors LLC purchased a new stake in shares of Boeing in the second quarter valued at about $26,000. Strategic Wealth Advisors LLC purchased a new stake in Boeing in the 2nd quarter valued at about $27,000. Bell Investment Advisors Inc purchased a new stake in Boeing in the 2nd quarter valued at about $29,000. Security National Bank of SO Dak bought a new position in shares of Boeing during the 2nd quarter worth approximately $30,000. Finally, Retirement Wealth Solutions LLC boosted its stake in shares of Boeing by 3,575.0% in the 3rd quarter. Retirement Wealth Solutions LLC now owns 147 shares of the aircraft producer’s stock worth $27,000 after buying an additional 143 shares during the last quarter. Institutional investors and hedge funds own 64.82% of the company’s stock.

Boeing Price Performance

The stock has a market cap of $132.85 billion, a PE ratio of 72.77 and a beta of 1.26. The company has a debt-to-equity ratio of 6.77, a quick ratio of 0.33 and a current ratio of 1.14. The business has a 50 day moving average price of $201.13 and a two-hundred day moving average price of $218.67.

Boeing Company Profile

The Boeing Company (NYSE: BA) is a global aerospace company that designs, manufactures and supports commercial airplanes, military aircraft, satellites, space systems and related products and services. Its offerings serve airlines, government agencies, defense organizations and other customers worldwide.

Boeing operates through three principal business areas: Commercial Airplanes, which develops and produces passenger and cargo aircraft; Defense, Space & Security, which provides military aircraft, weapons systems, satellites and space-related platforms; and Global Services, which offers parts, maintenance, training, engineering and other lifecycle support.

Founded in 1916 by William Boeing, the company has grown into one of the world’s major aerospace manufacturers.