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Wall Street’s Views on Boeing Ahead of Its 1Q18 Earnings Release

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Analysts’ earnings estimates for Boeing

Analysts expect Boeing (BA) to post adjusted EPS (earnings per share) of $2.56 in 1Q18, representing 27.2% growth YoY (year-over-year). In fiscal 2018, they expect the company to report adjusted EPS of $14.10, reflecting 37% growth from its adjusted EPS of $10.30 in 2017. Boeing has guided for adjusted EPS of $13.80–$14.

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Analysts’ recommendations

As of April 19, 2018, Boeing had a mean rating of 2.1, indicating “buy.” Of the 27 analysts covering Boeing, eight (29.6%) recommended “strong buy,” eight (29.6%) recommended “buy,” and 11 (40.7%) recommended “hold.”

Analysts’ price target for Being was $387.30, implying an 11.7% return based on the stock’s closing price of $346.64 on April 19. Analysts’ price targets for industrial (XLI) sector peers, along with their implied returns, were as follows:

  • Lockheed Martin (LMT): $378.72 with a return potential of 7.2%
  • General Dynamics (GD): $248.95 with a return potential of 10.7%
  • Raytheon (RTN): $241.31 with a return potential of 5.9%
  • United Technologies (UTX): $146.69 with a return potential of 18.4%

Analysts’ views

Boeing stock has risen by a whopping 90% in the last year. According to Barron’s, Morgan Stanley analyst Andrew Humphrey noted that Airbus has “greater longer-term leverage to profitability.” He added that “both companies have similar product offerings and industry position, yet Boeing’s market capitalization is about two times that of Airbus.”

Amid weakening international relations, Andrew perceives a greater threat to Boeing than Airbus, which he feels has fewer trade risks. He has rated Airbus as “overweight” and Boeing as “equal weight.”

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