Boeing (BA) is scheduled to report its fourth-quarter results on Wednesday before the bell. The aircraft maker is likely to see an increase in defense volume, services growth, and jets delivery contracts. The company will benefit from the KLX acquisition, lower tax rate, and improved Commercial Airplanes performance.
Earnings: Boeing shares rise on upbeat fourth-quarter results
The company has benefited from the growing demand for passenger planes. Boeing has maintained its lead over arch-rival Airbus and is expected to continue the trend during the fourth quarter. The company has depended on the business ties with American Airlines (AA) and United Airlines (UAL) and few regional carriers client list including Hawaiian Airlines and Turkish Airlines.
Analysts project Boeing to post earnings of $4.58 per share on revenue of $26.95 billion for the fourth quarter. In comparison, during the previous year quarter, the company reported a profit of $3.06 per share on revenue of $25.37 billion. Majority of the analysts recommended a “strong buy” or “buy” rating while expecting the stock to reach $415.71 per share in the next 52 weeks.
The results will be benefited by the solid order growth, in the form of the higher backlog. As a major aerospace and defense contractor, the company will likely benefit from the solid inflow of contracts from Pentagon and other foreign allies. Boeing believes lower-than-expected tax rate and improved performance at Commercial Airplanes could benefit the bottom line.
Related: Boeing Q3 2018 Earnings Transcript
The significant commercial contracts that Boeing won include the delivery of 100 737 MAX 8 aircraft to Green Africa Airways for $12 billion, the supply of 40 737 MAX 8 airplanes to a Korea-based airline for $5.9 billion, and the delivery of 30 737 MAX jets to Saudi-based airline for $5.9 billion with an option to add 20 more aircraft.
For the third quarter, Boeing posted a 31% jump in earnings helped by a strong operating performance at Commercial Airplanes and a tax benefit related to the tax settlement. The strong travel demand and improving load factors have prompted for new aircraft orders to increase at a steady pace. Backlogs improved by $3 billion to $491 billion at the end of the third quarter and included net orders of $28 billion.
Shares of Boeing is trading up 1.45% at $363.46 on the NYSE. The stock has risen over 8% in the past year and over 2% in the past three months.
We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips
Most Popular
DRI Earnings: Darden Restaurants’ Q2 2026 sales and profit rise YoY
Darden Restaurants, Inc. (NYSE: DRI), a leading fine dining restaurant chain, on Thursday reported an increase in sales and adjusted earnings for the second quarter of fiscal 2026. Total sales
CarMax (KMX) Q3 2026 earnings drop on lower sales; results beat estimates
Used car retailer CarMax, Inc. (NYSE: KMX) on Thursday reported a decline in earnings for the third quarter of fiscal 2026, hurt by lower sales. However, both revenues and earnings
ACN Earnings: Key quarterly highlights from Accenture’s Q1 2026 financial results
Accenture (NYSE: ACN) reported its first quarter 2026 earnings results today. Revenues of $18.7 billion increased 6% in US dollars and 5% in local currency compared to the same period a
