Boeing (BA) Up 4.3% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Boeing's recent earnings report shows a narrower loss than expected, driven by improved operational performance and increased commercial delivery volume, leading to a positive trend in its stock performance [2][3][4]. Financial Performance - Boeing incurred an adjusted loss of $1.24 per share in Q2 2025, better than the consensus estimate of a loss of $1.54, and improved from a loss of $2.90 per share in the same quarter last year [2]. - Revenues reached $22.75 billion, exceeding the consensus estimate of $21.86 billion by 4.1%, and increased by 34.9% from $16.87 billion in the prior year [4]. - The total backlog at the end of Q2 2025 was $618.54 billion, up from $544.74 billion at the end of Q1 2025 [5]. Segment Performance - Commercial Airplane Segment: Revenues surged 81% year over year to $10.87 billion, with 150 commercial planes delivered, a 63% increase from the previous year. The segment reported an operating loss of $557 million, an improvement from a loss of $715 million a year ago [6]. - Defense, Space & Security (BDS): Revenues grew 10% year over year to $6.62 billion, with an operating income of $110 million compared to a loss of $913 million in the prior year. The backlog for this segment was $74 billion, with 22% from international clients [7]. - Global Services: Revenues increased by 8% year over year to $5.28 billion, generating an operating income of $1,049 million, up 21% from the previous year [8]. Financial Condition - At the end of Q2 2025, Boeing had cash and cash equivalents of $7.09 billion and short-term investments of $15.88 billion, compared to $13.80 billion and $12.48 billion at the end of 2024 [9]. - Long-term debt decreased to $44.60 billion from $52.59 billion at the end of 2024. The operating cash outflow for the first half of 2025 was $1.39 billion, significantly improved from $7.29 billion in the same period of 2024 [10]. Market Outlook - There has been a positive trend in estimates revisions, with a consensus estimate shift of 16.39% in the past month [11]. - Boeing holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [13]. Industry Comparison - Boeing is part of the Zacks Aerospace - Defense industry, where RTX reported revenues of $21.58 billion for the quarter ended June 2025, reflecting a year-over-year increase of 9.4% [14].