Stock Market News – Boeing’s quarterly earnings report due amid raft of corporate releases
April 24, 2018 2:26 pm
Plane-maker Boeing will be releasing its earnings report for Q1 2018 before Wednesday’s opening bell on Wall Street. The consensus recommendation for the company is “buy”, matching the average consensus recommendation for Aerospace & Defense, its peer group.
The Chicago-headquartered firm is forecast to have made $2.58 in earnings per share (EPS) during the first quarter of the year according to analysts submitting their projections to Thomson Reuters’ estimate system (the Institutional Brokers’ Estimate System – I/B/E/S). Current expectations represent an upward revision from $2.56 from four weeks ago. If profits come in line with forecasts, this would constitute an increase by around 28.5% relative to the corresponding quarter from last year when the company earned $2.01 per share. Analysts’ EPS projections range from $2.28 to $2.86. The corporation managed to exceed analysts’ average estimates in all four quarters that preceded.
An earnings beat could generate buying interest for the company’s stock. Immediate resistance could be coming around the current level of the 50-day moving average at $339.44 – the share price is only marginally below this level at the moment – with an upside break turning the attention to the area around the $350 handle which was somewhat congested in previous months. Conversely, a data miss might put the stock under selling pressure, with the range around $330, another area of congestion recently, possibly acting as support in case of declines. In the event of steeper losses, additional support could come around the three-and-a-half-month low of $311.17 recorded in late March. Empirically, larger deviations between expected and actual results lead to sharper moves in a given corporation’s share price.
Using the RSI to gauge the company’s short-term momentum, the indicator has stalled its advance and is largely moving sideways in recent days, in support of a mostly neutral picture.
The plane manufacturer’s stock came under pressure on the back of China’s proposed aircraft tariffs as the US-China trade spat seemed to be gathering traction during the previous weeks. Reading between the lines though, revealed a not so grim picture for the firm. In addition, a more conciliatory tone was struck by the two nations recently, leaving the door open for constructive talks rather than a push for protectionist policies. However, the seemingly inherent unpredictability of the US administration, dubbed as “Trump risk”, renders an escalation of tensions a possibility. The Chinese aviation market is set to rapidly expand, with the world’s second largest economy anticipated to become the biggest market for companies like Boeing and rival European firm Airbus. Should the former be caught in trade-related cross-fire and on the receiving end of sanctions, then its outlook is expected to worsen.
In today’s firm-specific developments, budget-airline Ryanair has agreed to add to its order of the US aircraft-maker’s flagship short-haul plane model (Boeing 737 MAX), bringing the total to 135 from 110; the incremental order of 25 planes has a list price of $3 billion.
Boeing is a Dow Jones and S&P 500 constituent stock. Year-to-date and prior to Tuesday’s US market open, the plane-maker’s stock is trading higher by 14.9%, outperforming the Dow and S&P’s equivalent performance, which stands at -0.1% and -1.1% respectively (i.e. both benchmarks are down year-to-date). Wall Street analysts’ mean and median price target on Boeing are at $387.29 and $400.00 correspondingly, reflecting upside potential relative to where the stock price currently trades. From a relative valuation perspective, Boeing’s forward P/E ratio (price over forecasted earnings) stands at 22.6. This compares to the peer group’s 20.34.
Tomorrow will be a very busy day in terms of earnings releases. Other big names reporting results include AT&T, Comcast, eBay, Facebook, Ford and Twitter. Similar to Boeing, Comcast will release its results before the market open, with all other earnings reports scheduled for announcement after the US market’s close.
Lastly, rising US Treasury yields on both the short- and long-end of the spectrum, is a factor that might play out to the detriment of equity markets should it spur more profound rebalancing out of stocks and into bonds. Other macro-factors under consideration are global trade and geopolitical developments, though focus on them seems to be subdued at the moment.
Plane-maker Boeing will be releasing its earnings report for Q1 2018 before Wednesday’s opening bell on Wall Street. The consensus recommendation for the company is “buy”, matching the average consensus recommendation for Aerospace & Defense, its peer group.
The Chicago-headquartered firm is forecast to have made $2.58 in earnings per share (EPS) during the first quarter of the year according to analysts submitting their projections to Thomson Reuters’ estimate system (the Institutional Brokers’ Estimate System – I/B/E/S). Current expectations represent an upward revision from $2.56 from four weeks ago. If profits come in line with forecasts, this would constitute an increase by around 28.5% relative to the corresponding quarter from last year when the company earned $2.01 per share. Analysts’ EPS projections range from $2.28 to $2.86. The corporation managed to exceed analysts’ average estimates in all four quarters that preceded.
An earnings beat could generate buying interest for the company’s stock. Immediate resistance could be coming around the current level of the 50-day moving average at $339.44 – the share price is only marginally below this level at the moment – with an upside break turning the attention to the area around the $350 handle which was somewhat congested in previous months. Conversely, a data miss might put the stock under selling pressure, with the range around $330, another area of congestion recently, possibly acting as support in case of declines. In the event of steeper losses, additional support could come around the three-and-a-half-month low of $311.17 recorded in late March. Empirically, larger deviations between expected and actual results lead to sharper moves in a given corporation’s share price.
Using the RSI to gauge the company’s short-term momentum, the indicator has stalled its advance and is largely moving sideways in recent days, in support of a mostly neutral picture.
The plane manufacturer’s stock came under pressure on the back of China’s proposed aircraft tariffs as the US-China trade spat seemed to be gathering traction during the previous weeks. Reading between the lines though, revealed a not so grim picture for the firm. In addition, a more conciliatory tone was struck by the two nations recently, leaving the door open for constructive talks rather than a push for protectionist policies. However, the seemingly inherent unpredictability of the US administration, dubbed as “Trump risk”, renders an escalation of tensions a possibility. The Chinese aviation market is set to rapidly expand, with the world’s second largest economy anticipated to become the biggest market for companies like Boeing and rival European firm Airbus. Should the former be caught in trade-related cross-fire and on the receiving end of sanctions, then its outlook is expected to worsen.
In today’s firm-specific developments, budget-airline Ryanair has agreed to add to its order of the US aircraft-maker’s flagship short-haul plane model (Boeing 737 MAX), bringing the total to 135 from 110; the incremental order of 25 planes has a list price of $3 billion.
Boeing is a Dow Jones and S&P 500 constituent stock. Year-to-date and prior to Tuesday’s US market open, the plane-maker’s stock is trading higher by 14.9%, outperforming the Dow and S&P’s equivalent performance, which stands at -0.1% and -1.1% respectively (i.e. both benchmarks are down year-to-date). Wall Street analysts’ mean and median price target on Boeing are at $387.29 and $400.00 correspondingly, reflecting upside potential relative to where the stock price currently trades. From a relative valuation perspective, Boeing’s forward P/E ratio (price over forecasted earnings) stands at 22.6. This compares to the peer group’s 20.34.
Tomorrow will be a very busy day in terms of earnings releases. Other big names reporting results include AT&T, Comcast, eBay, Facebook, Ford and Twitter. Similar to Boeing, Comcast will release its results before the market open, with all other earnings reports scheduled for announcement after the US market’s close.
Lastly, rising US Treasury yields on both the short- and long-end of the spectrum, is a factor that might play out to the detriment of equity markets should it spur more profound rebalancing out of stocks and into bonds. Other macro-factors under consideration are global trade and geopolitical developments, though focus on them seems to be subdued at the moment.
Related Posts: