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Investing.com - Susquehanna raised its price target on Boeing (NYSE:BA) to $270.00 from $265.00 on Wednesday, while maintaining a Positive rating on the stock. The aerospace giant, currently valued at $170.83 billion, has seen its shares surge 27.73% year-to-date, according to InvestingPro data.
The firm cited Boeing’s second-quarter results as completing the first half of a pivotal turnaround year for the company, particularly in its Commercial Airplanes segment. Boeing delivered 150 aircraft during the quarter, including 104 737s and 24 787s, which contributed to better-than-expected free cash flow performance. With annual revenue of $69.44 billion, the company faces challenges with weak gross profit margins, as highlighted in InvestingPro’s comprehensive analysis.
Boeing’s 737 production has reached 38 aircraft per month in May and is currently stabilizing at this level before the company approaches the FAA for approval to increase to 42 per month. The 787 production rate has also reached 7 per month and is stabilizing, according to Susquehanna.
Demand remains strong with over 450 net orders in the second quarter, bringing Boeing’s quarter-end backlog to more than 5,900 commercial airplanes. The Defense, Space & Security business is showing early signs of improvement, with cost estimates being maintained for the second consecutive quarter.
Susquehanna noted that while the recently rejected contract offer from IAM machinists bears monitoring, the potential work stoppage would involve only about 3,200 workers compared to approximately 30,000 workers affected during the IAM stoppage in late 2024.
In other recent news, Boeing reported its second-quarter earnings with core earnings per share at -$1.24, outperforming the consensus expectation of -$1.40. The company also exceeded revenue forecasts, posting $22.75 billion against the anticipated $21.68 billion. Following these results, Bernstein raised its price target for Boeing to $287, maintaining an Outperform rating. Barclays (LON:BARC) also increased its price target to $255, keeping an Overweight rating, despite expressing surprise at the market’s reaction to the earnings. Additionally, Boeing secured a $37.9 million contract for P-8A Canada Training Systems, involving the delivery of Simulator Integration Kits and other hardware. This contract highlights Boeing’s ongoing involvement in defense-related projects. These developments reflect Boeing’s strong performance and strategic initiatives in recent times.
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