Boeing Company (NYSE: BA) has confirmed that it will release its Q4 2021 earnings on Wednesday, 26, 2022, after market close.
What to look for
The company is expected to post a YoY increase in earnings on high revenues for the quarter ending December 2021. Solid commercial and defense deliveries alongside robust aftermarket commercial jet services volume are expected to boost the company's Q4 2021 earnings. In the fourth quarter, the company had a 67.8% surge in commercial deliveries compared to the previous year, while defense shipments were 38.2% up YoY. Successful deliveries are crucial in revenue for production firms such as Boeing. Therefore, the massive improvement in the defense and commercial segment deliveries will boost Q4 results.
Earnings: Stockearning’s Estimated EPS for Q4 2021 is expected to be $0.15 per share compared to a quarterly loss of $15.25 a year ago. In the last quarter, the company produced an EPS loss of $0.6, missing in estimates by 252.94%. Historical EPS Performance shows that in the past 12 quarters, the company has beat estimates six times (50%) and missed six times (50%).
Revenue: The company is holding for revenue of $17.63 billion, suggesting a 15.2% YoY improvement. Boeing Global Services segment expects revenue of $4.151 billion, reflecting a YoY improvement of 11.2%. Earnings for the segment will be $574 million, which is an improvement from $143 million reported in Q4 2020.
Stock movement: BA shares have lost 2.1% since the company released its third-quarter earnings. However, BA shares have been UP 30 times out of the past 48 quarters. So, the historical price reaction suggests a 62% probability of the share price going UP once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 3%, while the predicted move on the seventh day is 3%.
What analysts are saying
Citi analyst Charles Armitage lowered his price target in BA from $240 to $238 but maintained a Hold rating on the stock. Following the publication of the deliveries projection, the recertification of the 737 Max in China, and "continuing issues" with the 787, Armitage modified his delivery expectations. He believes Boeing will "figure out its challenges," but he does not think the long-term value has enough upside to support a Buy recommendation.
Cowen analyst Cai von Rumohr has raised his price target on BA for9m $250 to $260 but maintained a Buy rating on the stock. Rumohr said that the drivers for the upgrade are the 787/737 inventory burndown, reduced supplier support, and upside in freight sales.
Jiemian News reported on January 9 that Hainan Airlines flew the first domestic 737 MAX passenger jet flight in China. However, it was a flight authorized by the Civil Aviation Administration and not a passenger airline carrying passengers, according to Morgan Stanley analyst Kristine Liwag. Nevertheless, the analyst still sees this development as favorable for the company and considers it as a trigger for the stock, and she maintains her Buy rating on the stock with a $274 price target.
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