The Boeing Co. (BA) Stock: Positive Earnings Made Price Fly

• BA Stock rallied 11.93% in a week, 10.61% in six months and 21.15% YTD. 
• The Boeing Co. released a positive Q2 report on July 26, 2023. 

Boeing Co. (NYSE: BA) released its Q2 earnings on July 26, 2023. A recent surge in its 737 and 787 production caused BA Stock to jump 10.55%. The aerospace company has been struggling with its Starliner rocket for years and SpaceX owner Elon Musk says he could help. Boeing was awarded the $5 Billion space contract by NASA in 2014. The company says delays caused them to lose $257 Million to the program in Q2, taking the total loss to $1.5 Billion.   

The Boeing Co. (BA) Stock: Financial Analysis

Boeing’s defense unit is battling profitability challenges, as the company failed to meet the deadlines on new aircraft development programs. Insiders credit this loss to supply chain challenges. Boeing Defense Space and Security (BDS) reported a loss of $527 Million. 

After transitioning the production line, the aerospace and defense company increased its production rate for the 737 narrow-body jetliners. They can now make 38 jets per month, as they previously manufactured around 31 aircraft. Also, the increased delivery rate of 787 Dreamliner was added to company revenues. 

Supply chain and logistics fault has cost the company immensely. In June 2023, Boeing had to delay the launch of Starliner. Also, the supply chain fault resulted in failing the deadline for the T-7 training jet and might also delay the MQ-25 tanker drone. This delay needs fixing.  

The Boeing Co. (NYSE: BA): Technical Analysis

BA stock, at press time, is trading at $233.75 with a jump of 0.41%; previous close and open were at $120.99 to $238.67, respectively. This indicates that the price action can form a new high soon. With an average volume of 12.01 Million shares, the market cap is $140.623 Billion. 

The trailing twelve-month (TTM) earnings per share (EPS) is negative $7.09, indicating weakness. Also, the analysts placed a 2.60 rating for moderate buy and estimated a price target at $223.14 with a 1.9% upside.  

Boeing reported its second-quarter earnings on July 26, 2023, where the reported revenue of $19.751 Billion surpassed the expected value of $18.592 Billion by 6.23%. 

At the same time, the reported earnings of minus $0.82 per share exceeded the estimated value of negative $0.902 by 9.14%. The past earnings state that BA share price jumped 10.55%. 

The jump in revenue is credited to 136 deliveries of its jets, operational cash flow reported at $2.9 Billion, and the free cash flow is $2.6 Billion. Still, the company has a backlog of around $440 Billion, including over 4,800 commercial jets. The cash burn for the company is $182 Million. 

A jump in deliveries of its 737 narrow-body aircraft and 787 Dreamliner wide-body jets is supposed to bring in around $2 Billion in annual free cash flow by 2026. With COVID-19 restrictions in the past, the demand in the market is high, and Boeing can leverage this to fly high. 

The Boeing Co. (BA) Stock: Candle Exploration

The positive earnings, coupled with a solid bullish candle, made the share price breakout of the base formation and entered the supply zone. If the trend continues, new highs for 2023 can be seen. The ascending trajectory of EMA hints at a rally, but the RSI of 71.51 foreshadows a drop. 

A bullish momentum would be visible if the price crosses the supply zone; the base formation after the double bottom pattern is also considered vital. 

If the price falls, it should not go below the immediate support of $222.32, if it does, it shall bounce off EMA. The chances of price action crossing S1 at $168.64 and S2 at $ 132.90 are unlikely. 

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