23 consecutive weeks of "high" Earnings Quality Ranking
Boeing (BA) is expected to report its Q4 2022 earnings on Wednesday, January 25, before the market opens. The report will be for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.27, much better than the reported EPS for the same quarter last year at $-7.69. Analysts also expect a 20.37B revenue income.
According to the latest published PMIs, the service sector, especially personal spending and tourism segments, is still strong, which could be why we can see it has a "high" Earnings Quality Ranking (EQR) for the 23rd consecutive week.
Good growth in the tourism and entertainment sectors increased the Aircraft clients and Boeing orders. The delivery of 110 MAX 737 jets and 22 Boeing 787 in line with the Boeing Commercial Airplane (BCA) segment's top-line performance is why investors are optimistic about company earnings.
It is good to remind that despite all improvements, it is still far from its pre-pandemic conditions. The company delivered a record 806 planes in 2018 before the grounding of the 737 MAX. The company also expects a free cash flow of $2.5 billion in the fourth quarter of 2022 and $3 billion to $5 billion in the fiscal year of 2023, en route to its target of $10 billion annually by 2026.
In its share price behavior front, as shown in the below figure, in the first nine months of 2022, it lost more than 44% to test the 2022 low of around $113. BA recovered more than 80% in the fourth quarter from a year low to trade above $210. From the technical point of view, it is in a clear uptrend with $228 as the first target, which is a 20-weekly moving average as well. The key support also sits around $160 (20DMA).
