It has been about a month since the last earnings report for Boeing (BA Quick QuoteBA - Free Report) . Shares have added about 22.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Boeing due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Boeing's Q3 Earnings Miss Estimates, Revenues Rise Y/Y

The Boeing company incurred an adjusted loss of $3.26 per share in third-quarter 2023, wider than the Zacks Consensus Estimate of a loss of $3.21. The bottom line, however, improved from the year-ago quarter’s reported loss of $6.18 per share.

Including one-time items, the company reported a GAAP loss of $2.70 per share, narrower than the year-ago quarter’s reported loss of $5.49.

Revenues

Boeing’s revenues amounted to $18.10 billion, which missed the Zacks Consensus Estimate of $18.25 billion by 0.8%. The top line, however, rose 13% from the year-ago quarter’s reported figure of $15.96 billion.

This improvement was driven by higher year-over-year revenues registered by the company’s all three business units.

Total Backlog

Backlog at the end of the third quarter was $469.18 billion, up from $439.56 billion recorded at the end of second-quarter 2023.

Segmental Performances

Commercial Airplane: Revenues at this segment increased 25% year over year to $7.88 billion, driven by higher 787 deliveries. The segment incurred an operating loss of $678 million, wider than the year-ago quarter’s reported operating loss of $622 million.

Boeing delivered 105 commercial planes during the quarter under review, down 6.3% year over year.

The backlog for this segment remained healthy, with more than 5,100 airplanes valued at $392 billion.

Boeing Defense, Space & Security (BDS): The segment recorded revenues of $5.48 billion, indicating a year-over-year improvement of 3%. It incurred an operating loss of $924 million, narrower than the year-ago quarter’s reported operating loss of $2,798 million.

BDS recorded a backlog of $58 billion, 29% of which comprised orders from international clients.

Global Services: Revenues at this segment improved 9% year over year to $4.81 billion. This unit generated an operating income of $784 million compared with $733 million in the prior-year quarter, driven by higher commercial volume and a favorable mix.

Boeing Capital Corporation (BCC): This segment reported negative quarterly revenues of $65 million compared with negative revenues of $86 million in the third quarter of 2022.

Financial Condition

Boeing exited third-quarter 2023 with cash and cash equivalents of $6.81 billion, and short-term and other investments of $6.56 billion. At the end of 2022, the company had cash and cash equivalents of $14.61 billion and short-term and other investments of $2.61 billion. Long-term debt amounted to $47.38 billion, down from $51.81 billion recorded at the end of 2022.

The company’s operating cash flow as of Sep 30, 2023, was $2,579 million compared with $55 million at the end of third-quarter 2022.

Free cash flow totaled $1,483 million at the end of third-quarter 2023 compared with $841 million in the corresponding period of 2022.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -430.26% due to these changes.

VGM Scores

Currently, Boeing has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Boeing has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Boeing belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, RTX (RTX Quick QuoteRTX - Free Report) , has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

RTX reported revenues of $18.95 billion in the last reported quarter, representing a year-over-year change of +11.8%. EPS of $1.25 for the same period compares with $1.21 a year ago.

For the current quarter, RTX is expected to post earnings of $1.25 per share, indicating a change of -1.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.2% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for RTX. Also, the stock has a VGM Score of D.