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Boeing (BA) Gains 1.4% Ahead of Earnings: Can It Keep Soaring?

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Shares of Boeing (NYSE: BA ) gained about 1.4% during regular hours Tuesday, the last day of trading before it releases its latest quarterly earnings report. Investors displayed excitement ahead of the report, and this is certainly a stock to watch once the full results are in.

Boeing (BA) Gains 1.4% Ahead of Earnings: Can It Keep Soaring?

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Boeing reported very strong results in its most recent earnings report, posting $3.64 in earnings per share and crushing our Zacks Consensus Estimate by over 40%. BA also saw $23.38 billion in revenue, representing nearly 5% year-over-year growth. The company saw strength across its commercial airplane, defense, space, security, and global service segments, leading to increased guidance for the current fiscal year.

As the largest aircraft manufacturer in the world in terms of revenues, orders, and delivers, Boeing sits at a unique position in the market. Demand for the company's commercial airplanes is on the rise due to a steady improvement in passenger and freight traffic.

It not only boasts a strong clientele in America, but has inked deal with large firms in India and China, as well as numerous other markets. BA expects a $1.1 trillion market in China alone, and is well-positioned to cash in. This earnings report will thus serve as an important status check on the aerospace giant's various initiatives.

According to our latest Zacks Consensus Estimates, analysts expect BA to report earnings of $3.24 per share on $23.98 billion in revenue. These results would mark year-over-year growth of 27.1% and 5.5% respectively.

Investors should also note that BA's consensus earnings projection has trended downward over the course of the quarter. The firm has seen 7 negative estimates for this quarter in the last two months, with 2 coming in just the last week. Projections for next quarter, this fiscal year, and next fiscal year have also been mostly negative, but a few upward revisions have been sprinkled in as well. This mixed revision activity has contributed to the stock's Zacks Rank #3 (Hold).

Looking at share price performance, BA has surged nearly 69% over the past year. The stock has also performed strongly as of late, gaining 21.5% on a year-to-date basis. More recently, shares have gained about 4.6% over the trailing 12 weeks.

A strong earnings beat might help BA maintain its bullish momentum. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.

Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.

This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.

A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.

BA currently has a flat Earnings ESP of 0%. This, combined with its Zacks Rank, leaves us uncertain about its chances at beating earnings estimates Wednesday morning. Still, it is worth noting that Boeing has notched 8 quarters of earnings outperformance in a row.

Make sure to check back here for our full analysis once Boeing reports!

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The post Boeing (BA) Gains 1.4% Ahead of Earnings: Can It Keep Soaring? appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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