Boeing Co . (NYSE: NYSE:BA) recently reported its Q3 results, surpassing revenue expectations with $18.1 billion, a 13% year-on-year increase largely attributed to a 25% growth in commercial airplanes. However, the company reported an adjusted loss of $3.26 per share, falling short of earnings expectations. Despite these near-term challenges and a 6% year-on-year decline in deliveries due to fuselage-related production issues, the company's long-term prospects remain promising, backed by a solid backlog of $469 billion.
The company's stock began trading at $194.00 on Friday, November 03, 2023, marking a 1.58% increase from the previous day. The prices fluctuated between $197.14 and $193.71 before closing at $192.01. Over the past year, share prices have oscillated between $147.50 and $243.10.
Despite experiencing a sales drop of -5.34% over the last five years, Boeing maintains an average annual Earnings Per Share (EPS) of 45.43%. Notable insider transactions include the EVP, Pres., & CEO of BDS selling 8,500 shares and the Company's Director purchasing 850 shares.
For the quarter ending June 29, 2023, Boeing reported an EPS of -$0.82, outperforming consensus estimates by $0.06 and achieving a net margin of -7.41%. Analysts project an EPS of 0.23 for the current fiscal year and 45.43% for the next fiscal year.
The company's financial performance metrics include a quick ratio of 0.30, a price to sales ratio of 1.56, and a price to free cash flow of 25.57 for the trailing twelve months. Its diluted EPS is -4.69, predicted to improve to -0.79 in the next quarter and reach 4.33 within a year.
Technical analysis data shows a 5-day average volume of 5.04 million, lower than its year-to-date volume of 5.63 million. Boeing's moving averages stand at $198.13 for a 50-day period and $208.52 for a 200-day period.
With a market capitalization of $118 billion, Boeing's total sales are $66,608 M and income is -4,935 M. The current macroeconomic environment marked by high oil prices and elevated interest rates raises uncertainty about BA's performance over the next year. However, BA stock shows growth potential with a projected valuation of $235 per share, indicating an upside of over 20%.
Over the past three years, BA stock has seen a 10% decline, underperforming the S&P 500's 15% increase, a trend common even among Industrials sector heavyweights and megacap stars. Despite this, the Trefis High Quality (HQ) Portfolio, comprising a diversified collection of 30 stocks, has consistently outperformed the S&P 500 each year due to its superior returns and lower risk profile.
InvestingPro Insights
Drawing from the real-time data provided by InvestingPro, Boeing's market capitalization stands at $116.73 billion, with a revenue of $75.76 billion over the last twelve months as of Q3 2023, reflecting a growth of 23.34%. Despite these figures, the company's P/E ratio remains negative at -41.12, indicating a lack of profitability.
InvestingPro Tips highlight that Boeing has been experiencing an acceleration in revenue growth, positioning it as a prominent player in the Aerospace & Defense industry. Yet, it's important to note that the company has been grappling with weak gross profit margins and a high EBIT valuation multiple, which may be of concern to investors. Furthermore, the company's stock price has fallen significantly over the last three months.
InvestingPro offers a multitude of additional tips and data points for investors looking to delve deeper into Boeing's financial performance and market position. This includes insights on the company's profitability outlook, valuation multiples, and more, all aimed at providing a comprehensive understanding of the investment landscape.
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