What To Expect From Boeing’s (BA) Q3 Earnings

Aerospace and defense company Boeing (NYSE:BA) will be reporting earnings tomorrow morning. Here’s what to expect.

Boeing missed analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $16.87 billion, down 14.6% year on year. It was a disappointing quarter for the company, with a miss of analysts’ operating margin estimates.

Is Boeing a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Boeing’s revenue to be flat year on year at $17.94 billion, slowing from the 13.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$8.82 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 14 downward revisions over the last 30 days (we track 17 analysts). Boeing has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Boeing’s peers in the aerospace and defense segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hexcel delivered year-on-year revenue growth of 8.8%, missing analysts’ expectations by 1.3%, and Byrna reported revenues up 194%, in line with consensus estimates. Byrna traded down 18.4% following the results.

Read our full analysis of Hexcel’s results here and Byrna’s results here.

There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 2.3% on average over the last month. Boeing is up 2.2% during the same time and is heading into earnings with an average analyst price target of $201.79 (compared to the current share price of $159.77).

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