Shareholders might have noticed that The Boeing Company ((NYSE:(BA))) filed its yearly result this time last week. The early response was not positive, with shares down 5.7% to US$194 in the past week. Revenues were in line with expectations, at US$58b, while statutory losses ballooned to US$20.88 per share. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Boeing
Taking into account the latest results, the consensus forecast from Boeing‘s 19 analysts is for revenues of US$79.6b in 2021, which would reflect a major 37% improvement in sales compared to the last 12 months. Boeing is also expected to turn profitable, with statutory earnings of US$1.76 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$78.2b and earnings per share (EPS) of US$2.70 in 2021. So there’s definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
The consensus price target held steady at US$232, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Boeing, with the most bullish analyst valuing it at US$306 and the most bearish at US$165 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Boeing‘s rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 37%, well above its historical decline of 7.1% a year over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 7.6% next year. So it looks like Boeing is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations – and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Boeing going out to 2025, and you can see them free on our platform here..
Plus, you should also learn about the 3 warning signs we’ve spotted with Boeing (including 1 which doesn’t sit too well with us) .
If you decide to trade Boeing, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.