Proactive Investors - The Boeing Company (NYSE:BA) analysts expect a somewhat uplifting outlook from the aircraft manufacturing giant when it reports its third-quarter financial results on October 25.
The consensus forecast for the Arlington, Virginia-based company is a 57% year-over-year improvement in its quarterly loss to $2.66 per share, while its revenue is anticipated to rise 16% to $18.45 billion.
In an update to clients, BofA Securities analysts noted that the unprecedented demand for narrow body aircraft support the stronger production targets released by Boeing, although its projected 737 output of 55 to 60 per month will likely take a year or two longer than the company expects, with 2026 or 2027 being a more realistic timeline.
Interestingly, they added that Boeing still aims to have suppliers produce ahead of its own production rate, as the company appears willing to absorb as much from the supply chain as it can in order to support the smoothest possible production ramp up.
"This could be a headwind to working capital in the near-term as Boeing takes on higher levels of inventory to support rising production rates," the analysts wrote.
Finally, analysts at BofA believe Boeing has all but admitted being stuck in second place behind Airbus in the narrowbody aircraft segment, while confirming how critical it is for Boeing to develop a next-generation airliner that targets the middle of the market between narrowbodies and widebodies.
They maintained their ‘Buy’ rating on Boeing stock with a $300 price objective.
Shares of Boeing eased 1.2% to $180.42 in late-afternoon trading on Friday and have fallen 8% year to date.