Boeing Co (NYSE: BA) is keeping in the green this morning even after the multinational said its loss widened sharply in the fiscal third quarter. Its revenue also missed Street expectations by some $2.0 billion.
Expert shares her outlook on the Boeing stock
Boeing attributed the weak quarterly performance to the fixed-price defence development programmes – that Hightower’s Stephanie Link is not much concerned about.
I think the absolute highlight is free cash flow. That’s what this stock trades on. So, for it to be double the expectations, I think that’s a very positive surprise.
Boeing had $2.90 billion in free cash flow this quarter. Link remains bullish on the Boeing stock also for “commercial” that’s keeping resilient. On CNBC’s “Squawk Box”, she said:
We know that demand for new aircraft is very strong. In Q3 alone, net new OEM orders for the industry were 600. So, if you own Boeing for the aerospace business, I feel pretty good about the demand.
Investors looking to buy Boeing stock should also be uplifted knowing the Wall Street has a consensus “overweight” rating on it. The average price target is $202 – up roughly 35% from here.
Key takeaways from Boeing’s Q3 financial update
- Lost $3.308 billion versus the year-ago $132 million only
- Per-share loss climbed significantly from 19 cents to $5.49
- Excluding FAS/CAS service cost adjustment, core loss was $6.18 a share
- Revenue jumped 4.5% to $15.95 billion as per the earnings press release
- Consensus was 13 cents of core loss on $17.91 billion revenue
- Delivered 112 commercial aircraft up from 85 last year
Boeing ended the quarter with $381 billion worth of backlog, including over 4,300 commercial aeroplanes. Also on Wednesday, Alaska Airlines ordered 52 of Boeing’s 737 MAX jetliners.