Boeing Stock Soars 50% in 12 Months: Is There Still Time to Buy? The Motley Fool

what is boeing trading at

Earnings from operations were $401 million in Q4 FY 2021, up 180.4% YOY. It accounted for more than 98% of companywide earnings from operations during the quarter. Revenue rose 14.9% YOY to $4.3 billion, comprising nearly 29% of the total for all segments. Boeing Co. (BA), one of the world’s leading aerospace companies, develops and manufactures commercial jets, military aircraft, weapons systems, and strategic defense and intelligence systems. The company offers services and support to customers globally and provides financing for orders and deliveries.

As a result, the company reported a core loss of $0.82 per share last quarter. In short, Boeing is in better shape than it was a couple of years ago, but it’s hardly a healthy business. David L. Calhoun is CEO and president of Boeing, positions he assumed in January 2020. He has been a member of the board of directors since 2009 and was chairman from October to December 2019. Prior to his current positions with Boeing, Calhoun served as senior managing director and head of portfolio management at The Blackstone Group since January 2014.

Improving financial performance may already be baked into Boeing’s stock price.

The company was incorporated in 1916 and is based in Chicago, Illinois. Boeing employs over 140,000 people in 65 countries making it one of the most diverse employers on the planet. Improving financial metrics could help Boeing stock continue its rally into 2024 and beyond. That said, the shares seem priced for perfection, with lots of future growth needed to justify the current valuation. If that growth doesn’t materialize, Boeing will disappoint long-term investors.

what is boeing trading at

That means Boeing stock’s performance will be driven solely by changes in the company’s market cap, with no help from dividends or share buybacks. For Boeing to deliver 10% annualized returns, its market cap would have to jump to around $200 billion by the end of 2026. First, as previously discussed, Boeing came under pressure to meet its 737 MAX delivery target for 2023 due to the need to fix a manufacturing issue on fuselages supplied by Spirit AeroSystems.

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Boeing’s BDS segment researches, develops, produces, and modifies military aircraft and weapons systems for strike, surveillance, and mobility. The segment also researches, develops, produces, and modifies strategic defense and intelligence systems, as well as satellite systems. The BDS segment reported a loss from operations of $255 million in Q4 FY 2021, a deterioration from the $502 million in earnings from operations it generated in the year-ago quarter.

  1. In short, Boeing is in better shape than it was a couple of years ago, but it’s hardly a healthy business.
  2. We’d like to share more about how we work and what drives our day-to-day business.
  3. BCA has been adversely impacted by issues related to its Max 737 and 787 aircrafts, as discussed above.

Boeing got its start in 1910 when William E. Boeing developed a love for aircraft. Soon after he takes his first plane ride which leads him to build a hangar and begin construction of his first plane. The onset of WWI helped spur the company’s growth but business was cut drastically in its wake. The start of WWII was another milestone for the company and one that led to its current position of dominance.

As such, a little patience before buying in is probably the best course here. It’s been a disappointing year for Boeing (BA -2.24%) shareholders, as the company’s operational performance hasn’t met expectations. Still, despite the bad news, there’s an investment case for the stock for value investors. Value investors will appreciate that Boeing’s stock still looks a good value, and all it will take is a few good quarters of execution, and it could be materially higher. Third, the defense issues are problematic, but the MQ-25, VC-25B, and KC-46 tanker (another high-cost program) are set to pass through key milestones next year. The company is scheduled to release its next quarterly earnings announcement on Wednesday, April 24th 2024.

Boeing Company (The)

In late 2020, the FAA lifted its grounding order, allowing the company to resume deliveries. One of Boeing’s biggest rivals, especially for commercial aircraft, is the Europe-based aerospace firm Airbus SE (EADSY). Among the many iconic brands within this segment are the AH-64 Apache, Air Force One, B-52, C-17 Globemaster, Chinook, F/A-18, and the V-22 Osprey VTOL aircraft used by the Marines.

But subsequent investigations determined that the system had malfunctioned inflight and contributed to the accidents. In November 2020, the FAA lifted its grounding order and Boeing began to resume deliveries of the aircraft. However, the company faces multiple lawsuits related to the accidents and is under investigation by the U.S. government, including the Securities and Exchange Commission (SEC). The grounding of the 737 MAX and the resulting halt in deliveries to customers has significantly affected Boeing’s financial strength, including its revenue and earnings. Second, while aircraft demand currently exceeds supply, Boeing’s management may be overconfident about how long that will last. Whereas Boeing only plans to restore aircraft production to around pre-pandemic levels by 2026, Airbus aims to deliver more than 1,100 commercial jets annually by then, compared to the previous record of 863 set in 2019.

The Boeing Co. (BA) is one of the world’s leading aerospace companies. It develops and manufactures commercial jets, military aircraft, weapons systems, and strategic defense and intelligence systems. The company also provides services to its commercial and defense customers, including supply chain and logistics management, engineering, maintenance, upgrades, pilot training systems, and data analytics. It also offers financing services to customers to support the purchase and delivery of their product. Boeing’s global services segment offers services to its commercial and defense customers around the globe. The segment provides a wide range of platforms, systems, products, and services.

On the other hand, two of Boeing’s three major business segments lost money in the second quarter. Low production rates and elevated expenses continued to weigh on the commercial jets division, causing its operating loss to widen to $383 million. Meanwhile, cost overruns and supply chain disruptions led to a $527 million operating loss in Boeing’s defense and space unit. Boeing announced in late January financial results for Q4 of its 2021 fiscal year (FY), the three-month period ended Dec. 31, 2021. The company reported a net loss attributable to its shareholders of $4.1 billion, an improvement from the net loss of $8.4 billion in the year-ago quarter.

In terms of global volume, the company estimates about 90% of all air freight is carried aboard one of its jets. The Dreamliner is a game-changing airplane for many carriers as it opens up the potential for new one-stop destinations because of its capacity and range. Boeing’s 737 MAX was grounded by the Federal Aviation Administration (FAA) and other aviation authorities worldwide in March 2019. The grounding followed two crashes within the span of five months that killed 346 people. During manufacturing, Boeing had installed a new system in the 737 MAX designed to prevent stalling of the aircraft.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Shares of Boeing (BA -2.24%) have been on a tear for much of the past year, rising 50%.

Revenue fell 13.5% YOY to $5.9 billion, comprising 39% of the total for all segments. Boeing’s commercial airplane segment develops, produces, and markets commercial jet aircraft and provides fleet support services, primarily for the global airline industry. The segment supplies jetliners to meet global airlines’ varying requirements for transporting passengers and cargo. In Q4 FY 2021, the segment’s loss from operations narrowed to $4.5 billion from $7.6 billion in the year-ago quarter.