Should You Buy, Hold or Sell Boeing Stock Before Q1 Earnings Release?

Core Viewpoint - Boeing is expected to report first-quarter 2025 results on April 23, 2025, with revenue estimates showing a significant year-over-year improvement, while earnings estimates indicate a deeper loss compared to the previous year [1][2]. Revenue Estimates - The Zacks Consensus Estimate for Boeing's revenues is $19.29 billion, reflecting a 16.4% increase from the same quarter last year [2]. - The commercial airplanes segment is projected to generate $7,464.9 million, indicating a 60.4% surge year-over-year [10]. - The Global Services unit's revenues are estimated at $5,350.7 million, representing a 6.1% improvement from the prior year [7]. - The defense unit's revenues are expected to be $6,533.4 million, showing a decline of 6% year-over-year [10]. Earnings Estimates - The consensus estimate for earnings is a loss of $1.54 per share, which is worse than the loss of $1.13 reported in the same quarter last year [2]. - The earnings estimates have seen a significant decline over the past 60 days, with a revision trend showing a decrease of 25.20% for Q1 [2][4]. Delivery Performance - Boeing's first-quarter deliveries are anticipated to show a 56.6% improvement in commercial shipments and an 85.7% increase in defense shipments compared to the previous year [8]. - Successful deliveries are crucial for revenue growth in manufacturing companies like Boeing [8]. Overall Financial Picture - Global services and commercial revenues accounted for nearly 65% of Boeing's total revenues as of the end of 2024, suggesting that growth in these areas may positively impact overall performance [11]. - Despite solid revenue expectations, challenges such as reach-forward losses from specific jet programs and production disruptions may negatively affect quarterly earnings [12]. Stock Performance and Valuation - Boeing's stock has declined by 6.6% over the past year, underperforming the aerospace-defense industry, which grew by 3.7% [13]. - The stock is currently trading at a forward price/sales ratio of 1.36, lower than the industry average of 1.87 [15]. Industry Outlook - The demand for air travel and the need for new jets and aftermarket services are expected to drive growth for aircraft manufacturers like Boeing [19]. - However, persistent supply-chain issues, particularly related to aircraft parts shortages, pose significant risks to the aerospace sector [20].