Boeing (BA) is gearing up to release its third-quarter earnings results before the market opens on Wednesday, October 23. Analysts are projecting a loss for the quarter, with estimates pointing to a loss of $10.52 per share, slightly worse than the $10.48 per share loss recorded in the same period last year. Despite the anticipated loss, Boeing is expecting to report revenue of $6.06 billion for the quarter, a significant drop from the $17.82 billion reported in the same period last year.
Adding to the mix, Boeing has plans to raise a substantial amount of capital. According to Reuters, the company intends to issue around $10 billion in new shares and $5 billion in mandatory convertible bonds, a type of bond that converts into equity at a predetermined date. Further filings with regulatory authorities indicate Boeing could potentially raise up to $25 billion in stock and debt. This move suggests the company is actively seeking to strengthen its financial position.
Boeing’s stock rose slightly to close at $159.88 on Tuesday, indicating a cautious optimism in the market. The upcoming earnings release and the company’s capital raise plans will undoubtedly be closely watched by investors.
Analyst Sentiment: A Mixed Bag
To help investors navigate this landscape, here’s a breakdown of recent analyst ratings for Boeing, highlighting their accuracy rates:
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Morgan Stanley:
Kristine Liwag maintained an Equal-Weight rating and lowered the price target from $195 to $170 on October 18. Liwag boasts an accuracy rate of 71%.*
Citigroup:
Jason Gursky kept a Buy rating but slashed the price target from $224 to $209 on October 15. This analyst has an 83% accuracy rate.*
TD Cowen:
Cai Rumohr maintained a Buy rating while reducing the price target from $200 to $190 on October 14. Rumohr’s accuracy rate stands at 77%.*
JP Morgan:
Seth Seifman retained an Overweight rating and lowered the price target from $235 to $195 on October 14. Seifman has an accuracy rate of 85%.*
Wells Fargo:
Matthew Akers maintained an Underweight rating and cut the price target from $110 to $109 on October 14. Akers has an accuracy rate of 78%.The mixed opinions among analysts highlight the complexities surrounding Boeing’s future prospects. Investors weighing a potential investment in BA stock should carefully consider these diverse perspectives and factor in the company’s upcoming earnings report and capital raise plans.
