The Boeing Co. (NYSE: BA) stock fell 1.88%, and the Dow Jones Industrial Average declined over 300 points, citing weaker Chinese economic data. On August 15, 2023, the reports of a weaker economy and a surprise drop in interest rates came from China, causing ripples across the American market. However, the investors needed help to handle the U.S. retail sales data from the Commerce Department a while back.
The Boeing Co. (BA Stock): Financial Analysis
China’s central bank lowered the interest rates by 15 points to 2.5%. This drop was in tandem with the weaker-than-expected industrial output and retail sales data in July 2023. In comparison, U.S. retail sales gained 0.7% in July, surpassing the estimated value of 0.4%.
The quarterly sales growth has been 10.21% which is considerably higher than a drop of 10.31% in the previous quarter. The cost of goods sold (COGS) was $17,362 Million, $16,013 in the previous quarter and the COGS growth has been 11.27%. The gross income growth in the previous quarter was 3.41%, while it was reported to be 1.31% in the last quarter.
The Boeing Co. (NYSE: BA): Technical Analysis
BA stock, at press time, is trading at $232.26, falling 1.88%; previous close and open were at $236.71 and $235.00, respectively. The 52-week range is from $120.99 to $243.10, hinting that a strong push could make the price fly. With an average volume of 5.80 Million shares, the market cap is $139.726 Billion.
The trailing twelve-month (TTM) earnings per share (EPS) is reported to be negative $7.09, showcasing weak financials. Analysts placed a 2.67 rating for moderate buy and estimated a price target at $244.07 with an upside of 5.1%.
Boeing reported its latest earnings on July 26, 2023, where the reported revenue of $19.751 Billion surpassed the expected value of $18.592 Billion by 6.53%. At the same time, the reported earnings of minus $0.82 per share also exceeded the estimated value of negative $0.911 per share by 9.95%. This positive report caused the BA stock to gain 15%.
Compared to the previous quarter, revenue gained 18.40%, while EPS fell by 121.62%. The operating expenses gained 71.09% to $1.94 Billion, but the operating margin declined by 1.13%. Net income suffered by 177.20% to negative $149.00 Million, and the net profit margin declined by 164.66% to minus 0.75.
The (TTM) revenue is $73.61 Billion, and the year-over-year (YoY) quarterly revenue growth is 18.40%. BA share price fell 1.80% a week but rallied 7.03% in a month, 20.37% YTD, and 37.20% in a year.
The Boeing Co. (NYSE: BA): Candle Exploration
After forming a double bottom pattern since April 2022, BA stock price action began base formation from the beginning of 2023. During the rise in December 2022, the price also went through a golden crossover. When 50EMA crosses the 200EMA from below, it’s a golden crossover that bulges the momentum for the long term.
Even though it broke out from the base with a gap, but is coming to fill it. It should bounce off immediate support at $222.32. Ascending 200EMA and 50EMA hints at a price jump, but the RSI at 56.36 suggests a drop. A bullish momentum could be seen if the price breaks through the selling zone.
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Source: https://www.thecoinrepublic.com/2023/08/16/the-boeing-co-ba-stock-facing-chinese-market-turbulence/