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How Boeing Stock has Trended Ahead of its 1Q18 Earnings Release

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Boeing’s 1Q18 earnings

Boeing (BA), the world’s largest aerospace company, is set to declare its 1Q18 results on April 25, 2018, before markets open. The company plans to discuss the results of operations with investors and analysts at 10:30 AM ET (Eastern Time) that day.

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Boeing—a favorite in the industrial space?

In March 2018, Boeing’s order numbers surpassed rival Airbus’s. While both aircraft makers’ combined numbers rose 21.3% year-over-year to 205 from 169, their sheer number of orders and total order values differed. Boeing bagged 197 gross orders valued at ~$13.0 billion, whereas Airbus had eight aircraft orders valued at ~$400.0 million.

Among Boeing’s 197 orders, 160 were for single-aisle aircraft, and 37 were for wide-body airplanes. Airbus didn’t receive any orders for wide-body jets in March 2018, while Boeing’s orders were heavily dominated by 737 MAXs.

After a fatal accident involving a Boeing 737 operated by Southwest Airlines (LUV) on April 17, 2018, many airlines have started inspecting their 737 engines. Recent Boeing 737 aircraft engines have been developed by CFM International, a collaboration between General Electric (GE) and Safran, a French company.

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Boeing stock price

Boeing stock rose after revelations about GE’s financial miscalculations in 4Q17 came to light. Since the beginning of 2018, BA stock has returned 15.5% to shareholders, even after a sell-off. In the last year, the company has returned 90.9%, the highest return among major industrial companies. Its peers have returned the following:

  • Lockheed Martin (LMT): 31.1%
  • General Dynamics (GD): 8%
  • Raytheon (RTN): 49.1%
  • Northrop Grumman (NOC): 46.9%
  • United Technologies (UTX): 9.6%

The SPDR S&P 500 ETF (SPY), a broader market indicator, has returned 15.2%. Notably, Boeing forms 0.81% of SPY.

Series highlights

In this short 1Q18 pre-earnings series, we’ll review analysts’ estimates for Boeing’s key financials, as well as their recommendations for the stock and industrial sector peers.

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