Boeing share price: what to expect from second quarter results

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Boeing share price: Q2 earnings forecast

Since the start of the year, the focus has been on relaunching and reopening trade, and although the second quarter (Q2) saw new records for Wall Street, this has not translated into price gains for Boeing, the aircraft manufacturer whose price share has barely increased since the start of the year and definitely declined since the start of the last quarter, and recently an underperformance of the key index.

International travel, while picking up from last year, remains tested globally, and more specifically in regions that have yet to fully reopen, and this does not include current (or future) variants. ) of Covid-19 maintaining lockdowns or forcing governments into increasing restrictions.

There’s a lot to digest that will factor into future profits as the latest hasn’t been positive for the aircraft maker, reducing its delivery target for 787 Dreamliner planes and temporarily slashing production rates on a new defect that will force him to spend more time on those in his inventory still to be delivered. There is also the partial cancellation of the 737 MAX order from flydubai.

The positive point of the last quarter is that deliveries have undoubtedly improved with 156 aircraft in the first half, almost the amount of last year, also picking up on the order front thanks to the order for 270 from United Airlines, 200 of which go to the Boeing 737 MAX. However, large orders do not translate into higher profit margins and especially when large wholesale orders from a few key airlines give them bargaining power, a theme to note in what remains a tested industry and more. very vulnerable.

What about the numbers?

Earnings per share (EPS) have not been positive since the last quarter of 2019, and this trend of negative numbers is expected to continue for an average EPS of – $ 0.72, not as bad as the losses suffered in recent quarters, but a lower number to zero nonetheless. And, there have been many instances where the actual numbers have fallen short of expectations. Revenues are expected to rise from $ 15.2 billion to almost $ 18 billion. Its stock price is near the lower end of analysts’ price targets, testing their majority buy recommendations (source: finance.yahoo.com).


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