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Poor Defense Deliveries to Hurt Boeing (BA) in Q2 Earnings
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The Boeing Company’s (BA - Free Report) Defense, Space & Security (BDS) segment is likely to have recorded dismal revenues in second-quarter 2022, courtesy of lower deliveries of the company’s defense products. The quarterly backlog count is however expected to reflect solid figures.
Boeing’s second-quarter 2022 results are scheduled to be released on Jul 27.
Click here to know how the company’s overall Q2 performance is expected to be.
Steady Order Flow to Aid Backlog
With the U.S. administration spending significantly on the nation’s defense for the past couple of years, Boeing’s defense and space unit has been witnessing solid order flow from the Pentagon, NASA and Congress for its varied products. This, in turn, has been consistently boosting the BDS unit’s backlogs.
Amid the uncertainties caused by the COVID-19 pandemic, the defense market has been relatively stable. Boeing has been witnessing solid, global demand for its major combat programs, which translated into an overall order value of $5 billion for the BDS unit in the first quarter of 2022. We expect the upcoming results to duly reflect a similar order count in terms of a solid backlog figure for the BDS unit.
Boeing’s second-quarter 2022 defense delivery figures reflected a decline of 7% from the year-ago period.
In the quarter, its defense deliveries totaled 40, down from 43 in the year-ago period. Such dismal delivery figures are expected to have hurt the defense segment’s revenues in the soon-to-be-reported quarter.
Notably, the Zacks Consensus Estimate for the company’s defense unit revenues, pegged at $6,519 million, indicates a decline of 5.2% from the year-ago quarter’s reported figure.
Earnings Prospects
Along with lower delivery volumes for its defense products, charges for impacts of the war in Ukraine might have had an adverse impact on the segment’s overall operating performance. This in turn might have hurt its quarterly earnings.
Further, supply chain constraints are projected to have hampered second-quarter earnings for the BDS unit.
Notably, the Zacks Consensus Estimate for the company’s defense unit earnings, pegged at $490 million, indicates a significant decline of 48.9% from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
According to the Zacks model, the combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of an earnings surprise.
Boeing has an Earnings ESP of -62.40% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some other defense companies you may want to consider as these also have the right combination of elements to post an earnings beat in their upcoming releases:
LHX delivered a four-quarter average earnings surprise of 2.32%. The Zacks Consensus Estimate for L3Harris’ second-quarter earnings, pegged at $3.16, has moved up 0.3% over the past seven days.
Spire Global, Inc. (SPIR - Free Report) : It has an Earnings ESP of +9.43% and a Zacks Rank #3. The company is scheduled to release its second-quarter results on Aug 10.
Spire delivered an earnings surprise of 7.7% in the last reported quarter. The Zacks Consensus Estimate for Spire’s second-quarter sales is pegged at $18.93 billion.
CAE Inc (CAE - Free Report) : The company is expected to release its fiscal first-quarter results soon. It holds a Zacks Rank #3 and has an Earnings ESP of +2.27%.
The Zacks Consensus Estimate for CAE’s fiscal first-quarter earnings, pegged at 18 cents, has remained unchanged over the past seven days. CAE delivered a four-quarter average earnings surprise of 7.67%.
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Poor Defense Deliveries to Hurt Boeing (BA) in Q2 Earnings
The Boeing Company’s (BA - Free Report) Defense, Space & Security (BDS) segment is likely to have recorded dismal revenues in second-quarter 2022, courtesy of lower deliveries of the company’s defense products. The quarterly backlog count is however expected to reflect solid figures.
Boeing’s second-quarter 2022 results are scheduled to be released on Jul 27.
Click here to know how the company’s overall Q2 performance is expected to be.
Steady Order Flow to Aid Backlog
With the U.S. administration spending significantly on the nation’s defense for the past couple of years, Boeing’s defense and space unit has been witnessing solid order flow from the Pentagon, NASA and Congress for its varied products. This, in turn, has been consistently boosting the BDS unit’s backlogs.
Amid the uncertainties caused by the COVID-19 pandemic, the defense market has been relatively stable. Boeing has been witnessing solid, global demand for its major combat programs, which translated into an overall order value of $5 billion for the BDS unit in the first quarter of 2022. We expect the upcoming results to duly reflect a similar order count in terms of a solid backlog figure for the BDS unit.
The Boeing Company Price and EPS Surprise
The Boeing Company price-eps-surprise | The Boeing Company Quote
Poor Deliveries Hurt Q2 Performance
Boeing’s second-quarter 2022 defense delivery figures reflected a decline of 7% from the year-ago period.
In the quarter, its defense deliveries totaled 40, down from 43 in the year-ago period. Such dismal delivery figures are expected to have hurt the defense segment’s revenues in the soon-to-be-reported quarter.
Notably, the Zacks Consensus Estimate for the company’s defense unit revenues, pegged at $6,519 million, indicates a decline of 5.2% from the year-ago quarter’s reported figure.
Earnings Prospects
Along with lower delivery volumes for its defense products, charges for impacts of the war in Ukraine might have had an adverse impact on the segment’s overall operating performance. This in turn might have hurt its quarterly earnings.
Further, supply chain constraints are projected to have hampered second-quarter earnings for the BDS unit.
Notably, the Zacks Consensus Estimate for the company’s defense unit earnings, pegged at $490 million, indicates a significant decline of 48.9% from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
According to the Zacks model, the combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of an earnings surprise.
Boeing has an Earnings ESP of -62.40% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some other defense companies you may want to consider as these also have the right combination of elements to post an earnings beat in their upcoming releases:
L3Harris Technologies (LHX - Free Report) : It is scheduled to release its second-quarter results on Jul 28. LHX holds a Zacks Rank #3 and has an Earnings ESP of 0.95%. You can see the complete list of today’s Zacks #1 Rank stocks here.
LHX delivered a four-quarter average earnings surprise of 2.32%. The Zacks Consensus Estimate for L3Harris’ second-quarter earnings, pegged at $3.16, has moved up 0.3% over the past seven days.
Spire Global, Inc. (SPIR - Free Report) : It has an Earnings ESP of +9.43% and a Zacks Rank #3. The company is scheduled to release its second-quarter results on Aug 10.
Spire delivered an earnings surprise of 7.7% in the last reported quarter. The Zacks Consensus Estimate for Spire’s second-quarter sales is pegged at $18.93 billion.
CAE Inc (CAE - Free Report) : The company is expected to release its fiscal first-quarter results soon. It holds a Zacks Rank #3 and has an Earnings ESP of +2.27%.
The Zacks Consensus Estimate for CAE’s fiscal first-quarter earnings, pegged at 18 cents, has remained unchanged over the past seven days. CAE delivered a four-quarter average earnings surprise of 7.67%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.