Can Boeing Surpass Modest Q2 Expectations?

The Boeing Company will release its fiscal 2024 second-quarter earnings report on Wednesday before the market opens. This quarter has been challenging for the US defense and aerospace giant, with a 32% decline in deliveries reflecting ongoing issues with safety and production confidence.

Compounding the difficulties, Boeing’s first crewed spaceflight has yet to return to Earth, regulatory scrutiny continues on thousands of Boeing aircraft, and legal troubles persist.

Despite these setbacks, there are some positive developments. The company has made progress with its expansion into the Asian market, delivered a better-than-expected January-March report, and successfully launched the first Boeing Starliner crewed test flight. Boeing also completed the $4.7 billion acquisition of Spirit AeroSystems and secured other deals during the quarter, indicating efforts to maintain its market position.

Given these factors, Zacks Investment Research forecasts Boeing will report an 11.4% revenue decline to $17.49 billion, down from $19.75 billion in the same period last year. The company is also expected to post a loss per share of $1.68, compared to a loss of $0.25 previously. Additionally, Boeing’s commercial segment is anticipated to fall to $6.34 billion, while the defense segment may decrease to $6.3 billion, reflecting year-on-year declines of 28.3% and 2.2%, respectively.