Stockholders were not at all happy with aerospace stock Boeing (BA) today. While Boeing’s earnings report pointed to rising sales and pared-back losses, it was nowhere near enough for shareholders. Word about the newest potential Boeing strike did not help matters either. And all of this combined to mean bad news for Boeing. Shares plummeted over 4% in Tuesday afternoon’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The news should have been better than this. Reports noted that Boeing had cut its quarterly loss in half, easily beating analyst expectations. Boeing was also stepping up its deliveries on its various jet lines, and planned to start boosting its monthly output this year, if at all possible. Boeing posted an adjusted core loss of $1.24 per share, which was actually a win for Boeing. This time last year, Boeing posted a loss of $2.90 per share, and analysts were looking for Boeing to post a loss of $1.48 per share. But a loss was a loss, and a loss was too much for shareholders.
However, the news that certifications for the 737 Max 7, the 737 Max 10, and the 777-9 would be delayed, with no chance of certification this year further hurt. Earlier reports suggested that the certifications might creep in under the wire. But now, there is no hope, and 2026 is the new date to beat. For the 737s, the issue is one of engine de-icing that is proving to be a “…little more tricky…” than expected.
Boeing to Shrug Off Strike?
Meanwhile, a whole new strike, almost a year to the day after the last Boeing strike, reared its ugly head. While Boeing’s defense business was bracing for a 3,200-strong union worker strike, CEO Kelly Ortberg found himself oddly unconcerned about the whole matter.
The reason? As it turns out, the 3,200 workers who would walk out on this strike represented a bare fraction of the 32,000 who walked out on the last one. Ortberg believed that the company would “…manage through this,” and that no one should “…worry too much about the implications of the strike.” While it does make some sense that this is a much smaller strike, the loss of Boeing’s defense contracts could be a bigger blow than some might realize.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 18 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 26.52% rally in its share price over the past year, the average BA price target of $250.84 per share implies 10.62% upside potential.
