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On Thursday, Bernstein SocGen Group maintained a Market Perform rating on Boeing stock (NYSE:BA) with a steady price target of $181.00. The aerospace giant’s first-quarter financial performance surpassed expectations, particularly in terms of cash flow. According to InvestingPro data, Boeing, currently trading at $172.32, appears overvalued based on its Fair Value analysis, despite being a prominent player in the Aerospace & Defense industry with a market capitalization of $129.77 billion. Boeing reported a core earnings per share (EPS) loss of $0.49, which was notably better than the anticipated consensus loss of $1.21 and Bernstein’s own estimate of a $0.86 loss. Revenue for the quarter reached $19.50 billion, slightly above the consensus estimate of $19.37 billion. InvestingPro analysis reveals that the company has struggled with profitability, showing weak gross profit margins and operating with moderate debt levels. For deeper insights into Boeing’s financial health and 7 additional exclusive ProTips, consider exploring InvestingPro’s comprehensive analysis.
Boeing’s free cash flow for the quarter was negative $2.29 billion, yet this figure was still more favorable compared to the expected negative $3.42 billion consensus. While no formal guidance update accompanied the earnings release, Boeing reaffirmed its goal to increase 737 production rates to 38 planes per month by the end of the year. In the first quarter, Boeing successfully delivered 105 units of the 737 model. With total revenue of $66.52 billion in the last twelve months and a beta of 1.24, the company’s performance remains closely tied to market movements. Access Boeing’s detailed Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks, for comprehensive analysis of the company’s production targets and financial outlook.
Analysts are keenly awaiting further details on how tariffs might affect Boeing’s business, which they anticipate will be addressed during the company’s conference call. Additionally, insights into the free cash flow outlook for the remainder of the year are highly anticipated, especially following a stronger than expected first quarter.
The 787 Dreamliner program is also under scrutiny, as Boeing is currently producing at a rate of 5 units per month. The company has expressed intentions to boost this rate to 7 units per month by the end of the year. This is particularly significant as the 787 program has faced recent challenges in meeting its production rate targets.
In other recent news, Boeing reported its first-quarter 2025 earnings, showing a significant improvement over analyst expectations. The company posted a core loss per share of $0.49, which was notably better than the forecasted loss of $1.25. Revenue reached $19.5 billion, slightly surpassing the anticipated $19.49 billion. Boeing also reported an 18% year-over-year revenue increase, driven by strong market demand and increased production efficiency, with 130 commercial airplanes delivered in the quarter. In addition, Boeing secured a major contract for the F-47 fighter aircraft, marking a significant achievement in its defense business.
TD Cowen maintained its Buy rating on Boeing stock, with a price target of $180, following these promising first-quarter results. Despite ongoing trade tensions with China, Boeing remains optimistic, seeking to re-market 50 aircraft initially intended for Chinese airlines to other customers. The company confirmed its production and delivery goals for its main commercial jets, aiming to increase the 737 production rate to 38 per month and the 787 rate to 7 per month in the coming months. Boeing’s strategic approach to managing its extensive backlog and production targets reflects its commitment to overcoming current market challenges.
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