Boeing Stock Pre-Q4 Earnings: Should You Buy Now or Wait?

Core Viewpoint - Boeing is expected to report a significant decline in fourth-quarter 2024 results, with revenues projected at $17.29 billion, reflecting a 21.5% decrease year-over-year, and an anticipated loss of $2.29 per share, worsening from a loss of 47 cents in the prior year [2][10]. Revenue Expectations - The Zacks Consensus Estimate for Boeing Global Services (BGS) revenues is $5,077.3 million, indicating a 4.7% increase from the previous year, with earnings expected to grow by 3.9% to $875.1 million [7]. - The commercial airplanes segment is projected to generate $5,078.8 million, a 51.5% decline year-over-year, while the defense unit's revenues are estimated at $6,446.8 million, down 4.4% [9][10]. Delivery Performance - Boeing's fourth-quarter deliveries are expected to show a 63.7% decline in commercial shipments and a 33.3% drop in defense shipments compared to the previous year [8][10]. - The significant drop in deliveries is likely to adversely impact overall revenue growth, overshadowing the positive contributions from the BGS unit [10]. Earnings Outlook - The company's earnings have missed the Zacks Consensus Estimate in two of the last four quarters, with an average negative surprise of 1.82% [3]. - Current projections indicate that lower operating profits from reduced deliveries and increased costs from production disruptions will negatively affect quarterly earnings [11]. Stock Performance and Valuation - Boeing's stock has decreased by 18.3% over the past year, underperforming the aerospace-defense industry, which declined by 2.3% [12]. - The stock is currently trading at a forward sales multiple of 1.64, lower than the industry average of 1.29, indicating a discounted valuation [14]. Industry Comparison - Other notable stocks in the aerospace-defense sector, such as Embraer, Leidos Holdings, and Lockheed Martin, have shown significant year-to-date gains, contrasting with Boeing's performance [18].