How Should an Investor Play Boeing Stock After Q1 Earnings Beat?

Core Viewpoint - Boeing Company reported strong first-quarter 2025 results, with both revenue and earnings exceeding Zacks Consensus Estimates, reflecting improved operational performance and commercial delivery volume [1] Financial Performance - The operating cash outflow for Boeing in Q1 2025 was $1.62 billion, a significant decrease from $3.36 billion in the same quarter last year [1] - The Zacks Consensus Estimate for Q2 2025 sales indicates a 20.1% increase year-over-year, with earnings also expected to show significant growth [11] Stock Performance - Boeing's shares have increased by 2.5% over the past year, underperforming the Zacks aerospace-defense industry's growth of 3.4%, the broader aerospace sector's return of 7.8%, and the S&P 500's rise of 8.2% [3] - The one-year price return for Boeing is lower than Embraer, which surged 71.7%, but better than Airbus, which declined by 3.3% [4] Challenges and Risks - Boeing has faced challenges due to product quality issues in major commercial jet programs and a work stoppage that delayed production timelines [5][6] - Persistent supply-chain issues, particularly a shortage of aircraft parts, continue to affect Boeing's operational performance and revenue generation prospects [14][15] Future Outlook - The demand for air travel and the replacement of aging fleets are expected to drive growth in commercial jet deliveries and aftermarket services for Boeing [7] - The defense segment secured contracts worth $4 billion in Q1 2025, contributing to a solid backlog of $62 billion, which supports revenue growth [9] Earnings Growth Estimates - The long-term earnings growth rate consensus for Boeing is 17.9%, surpassing the industry's 10.8% [10] - Year-over-year growth estimates for earnings in Q2 2025 show a significant improvement, with a projected increase of 74.83% [13]