We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Product Deliveries Set to Benefit Boeing (BA) in Q1 Earnings
Read MoreHide Full Article
The Boeing Company (BA - Free Report) is set to release first-quarter 2022 results on Apr 27, before the opening bell.
In the last reported quarter, the company incurred a loss of $7.69, much wider than the Zacks Consensus Estimate of a loss of 9 cents. Solid commercial as well as defense deliveries, along with strong aftermarket commercial jet services volume, must have boosted Boeing’s performance in the fourth quarter.
Solid Product Deliveries to Aid Results
Boeing’s first-quarter deliveries reflected a solid 23.4% surge in commercial shipments from the year-ago reported figure. Defense shipments also improved 5.1% year over year.
For manufacturing companies like Boeing, successful deliveries of finished products play a crucial role in boosting revenue growth. Therefore, such a significant improvement witnessed in the jet maker’s deliveries for both its commercial and defense segments is expected to bolster Boeing’s overall first-quarter results.
We expect the aforementioned delivery figures for Boeing’s commercial and defense segments to have contributed favorably to the operational performance of the respective business units. This in turn must have boosted first-quarter earnings and revenues of both these units in the soon-to-be-reported quarter as well.
As far as Boeing Global Services (BGS) unit’s performance in the first quarter is concerned, we remain optimistic.
Notably, a steady recovery in the commercial aerospace market is expected to have boosted airline flight operations for passengers as well as cargo traffic. This is projected to have bolstered aftermarket commercial jet services in the first quarter of 2022 and bolstered the BGS unit’s revenues.
On the other hand, a favorable mix of products and services is expected to have boosted the operating margin of the BGS unit. This, in turn, must have contributed to its bottom-line performance in the first quarter.
The Zacks Consensus Estimate for BGS unit revenues, pegged at $4,140 million, indicates an improvement of 10.4% from first-quarter 2021 reported revenues.
The consensus mark for this segment’s earnings is pegged at $507 million, which indicates a solid improvement of 15% from first-quarter 2021’s reported earnings.
Cash Flow Projections
Improved air travel statistics in recent times, which resulted in higher commercial deliveries, along with higher order receipts must have contributed favorably to Boeing’s cash flow reserve in the first quarter of 2022. Also, solid 737 deliveries must have boosted operating cash flow.
However, charges related to the 787 program might have had an adverse impact on the overall cash performance of this jet giant in the soon-to-be-reported quarter.
Q1 Expectations
Considering the aforementioned discussion, we remain optimistic about BA’s Q1 overall revenue and earnings performance. However, the abnormal costs in relation to the 787 program might have had some adverse impact on the company’s bottom line.
The Zacks Consensus Estimate for Boeing’s total revenues is pegged at $15.68 billion, suggesting a 3% improvement from the prior-year reported number. The consensus estimate for the bottom line is pegged at a loss of 26 cents per share, indicating an improvement from the year-ago quarter’s loss of $1.53.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Boeing this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case for BA.
Boeing has an Earnings ESP of +1.72% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock to Consider
Here is a defense company you may want to consider as it has the right combination of elements to post an earnings beat this season:
Northrop Grumman (NOC - Free Report) has an Earnings ESP of +1.32% and a Zacks Rank #3. NOC has a four-quarter average negative earnings surprise of 11.05%.
The Zacks Consensus Estimate for Northrop’s first quarter is pegged at $5.95 per share, which has remained unchanged in the past 60 days. NOC boasts a long-term earnings growth rate of 6.2%.
GD delivered a four-quarter average earnings surprise of 3.72%. The Zacks Consensus Estimate for General Dynamics’ first-quarter earnings, pegged at $2.49, has remained unchanged over the past 30 days. GD boasts a long-term earnings growth rate of 9.6%.
Textron (TXT - Free Report) is scheduled to release its first-quarter results on Apr 28. It holds a Zacks Rank #3.
The Zacks Consensus Estimate for Textron’s first-quarter earnings, pegged at 74 cents, has declined 3.9% over the past 30 days. TXT boasts a long-term earnings growth rate of 11.8%.
Image: Bigstock
Product Deliveries Set to Benefit Boeing (BA) in Q1 Earnings
The Boeing Company (BA - Free Report) is set to release first-quarter 2022 results on Apr 27, before the opening bell.
In the last reported quarter, the company incurred a loss of $7.69, much wider than the Zacks Consensus Estimate of a loss of 9 cents. Solid commercial as well as defense deliveries, along with strong aftermarket commercial jet services volume, must have boosted Boeing’s performance in the fourth quarter.
Solid Product Deliveries to Aid Results
Boeing’s first-quarter deliveries reflected a solid 23.4% surge in commercial shipments from the year-ago reported figure. Defense shipments also improved 5.1% year over year.
For manufacturing companies like Boeing, successful deliveries of finished products play a crucial role in boosting revenue growth. Therefore, such a significant improvement witnessed in the jet maker’s deliveries for both its commercial and defense segments is expected to bolster Boeing’s overall first-quarter results.
We expect the aforementioned delivery figures for Boeing’s commercial and defense segments to have contributed favorably to the operational performance of the respective business units. This in turn must have boosted first-quarter earnings and revenues of both these units in the soon-to-be-reported quarter as well.
The Boeing Company Price and EPS Surprise
The Boeing Company price-eps-surprise | The Boeing Company Quote
Expectations for BGS
As far as Boeing Global Services (BGS) unit’s performance in the first quarter is concerned, we remain optimistic.
Notably, a steady recovery in the commercial aerospace market is expected to have boosted airline flight operations for passengers as well as cargo traffic. This is projected to have bolstered aftermarket commercial jet services in the first quarter of 2022 and bolstered the BGS unit’s revenues.
On the other hand, a favorable mix of products and services is expected to have boosted the operating margin of the BGS unit. This, in turn, must have contributed to its bottom-line performance in the first quarter.
The Zacks Consensus Estimate for BGS unit revenues, pegged at $4,140 million, indicates an improvement of 10.4% from first-quarter 2021 reported revenues.
The consensus mark for this segment’s earnings is pegged at $507 million, which indicates a solid improvement of 15% from first-quarter 2021’s reported earnings.
Cash Flow Projections
Improved air travel statistics in recent times, which resulted in higher commercial deliveries, along with higher order receipts must have contributed favorably to Boeing’s cash flow reserve in the first quarter of 2022. Also, solid 737 deliveries must have boosted operating cash flow.
However, charges related to the 787 program might have had an adverse impact on the overall cash performance of this jet giant in the soon-to-be-reported quarter.
Q1 Expectations
Considering the aforementioned discussion, we remain optimistic about BA’s Q1 overall revenue and earnings performance. However, the abnormal costs in relation to the 787 program might have had some adverse impact on the company’s bottom line.
The Zacks Consensus Estimate for Boeing’s total revenues is pegged at $15.68 billion, suggesting a 3% improvement from the prior-year reported number. The consensus estimate for the bottom line is pegged at a loss of 26 cents per share, indicating an improvement from the year-ago quarter’s loss of $1.53.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Boeing this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case for BA.
Boeing has an Earnings ESP of +1.72% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock to Consider
Here is a defense company you may want to consider as it has the right combination of elements to post an earnings beat this season:
Northrop Grumman (NOC - Free Report) has an Earnings ESP of +1.32% and a Zacks Rank #3. NOC has a four-quarter average negative earnings surprise of 11.05%.
The Zacks Consensus Estimate for Northrop’s first quarter is pegged at $5.95 per share, which has remained unchanged in the past 60 days. NOC boasts a long-term earnings growth rate of 6.2%.
Other Defense Earnings Coming Up
General Dynamics (GD - Free Report) is scheduled to release its first-quarter results on Apr 27. It holds a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
GD delivered a four-quarter average earnings surprise of 3.72%. The Zacks Consensus Estimate for General Dynamics’ first-quarter earnings, pegged at $2.49, has remained unchanged over the past 30 days. GD boasts a long-term earnings growth rate of 9.6%.
Textron (TXT - Free Report) is scheduled to release its first-quarter results on Apr 28. It holds a Zacks Rank #3.
The Zacks Consensus Estimate for Textron’s first-quarter earnings, pegged at 74 cents, has declined 3.9% over the past 30 days. TXT boasts a long-term earnings growth rate of 11.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.