How Wall Street Analysts View Boeing in 2017
For the third quarter of 2017, Boeing’s (BA) revenues are estimated to fall 0.1% year-over-year (or YoY) to $23.9 billion. This could be followed by 3.8% YoY growth for 4Q17 to $24.2 billion.
This trend could lead to a fiscal 2017 revenue decline of 2.8% YoY to $91.9 billion, which would be the second consecutive year of declining revenues. Boeing’s 2016 revenues have fallen 1.6% YoY. In 2015, its revenues had increased 5.9% YoY.
Interested in BA? Don't miss the next report.
Receive e-mail alerts for new research on BA
For the third quarter of 2017, Boeing’s EBITDA1 could rise 11.5% YoY to $3.1 billion. For 4Q17, its EBITDA could grow 17.8% YoY to $3.2 billion. For the third quarter, the company’s growth is primarily driven by margin expansion, as its revenues are expected to remain mostly flat.
Boeing’s EBITDA margins are expected to increase to 12.9% from 11.5% in 3Q16. Revenue growth and margin expansion could help Boeing post higher EBITDA growth. For 4Q17, its EBITDA margins are expected to improve to 13.3% from 11.7% in 4Q16.
This trend could lead to fiscal 2017 EBITDA growth of 50.7% YoY to $11.7 billion. Its EBITDA margin of 12.7% is significantly higher than the 8.2% margin posted in 2016. Poor 2016 performance could help Boeing achieve this performance in 2017.
For the third quarter, Boeing’s earnings are expected to fall 24.6% YoY to $2.70 per share due to a 25.8% YoY decline in net profit. For 4Q17, earnings are expected to rise 15.3% YoY to $2.90 per share due to a 6.7% YoY growth in net profit.
For fiscal 2017, Boeing’s earnings per share (or EPS) are expected to rise 38.4% YoY to $10.00 per share due to a 24.7% growth in net profits. The total number of shares outstanding for 2017 could fall 5.4% to 608.9 million shares, a result of Boeing’s share buyback program.
Boeing forms the third-largest holding of the Dow Jones Industrial Average ETF’s (DIA) portfolio with an ~6% allocation. DIA also holds 3.9% of its portfolio in United Technologies (UTX). DIA has no holdings in Lockheed Martin (LMT), General Dynamics (GD), and Northrop Grumman (NOC).
- earnings before interest, tax, depreciation, and amortization ↩