Boeing Stock Jumps After Corporate Earnings Numbers
Jul 26, 2023
Boeing (BA) stock is jumping higher in early Wednesday trading after reporting second-quarter fiscal results. Boeing prices jumped 6% to $227.88 per share as analysts applauded the numbers despite the market risk from an incoming Fed decision. That puts the airplane manufacturer’s stock at the highest level since January 2022.
While today’s move is significant and may be followed by more bullish activity, the stock is only up 12.8% this year, which trails the S&P 500’s 20% climb. Investors soured on Boeing amid a profit decline, but today’s numbers may flip the narrative and push prices higher through the rest of the year.
It wasn’t all good news. Boeing’s embattled defense section added $514 million in charges for Q2, with a lot of that coming from the 46A Pegasus—a military tanker plane that has been plagued by issues from its suppliers.
Otherwise, it was pretty good news. Revenue rose to $19.8 billion from $16.7 billion a year ago, and free cash flow crossed the wires at $2.6 billion, a significant improvement from a $0.2 billion bleed in Q2, 2022.
The company still holds a notable debt burden but made enough progress to satisfy shareholders, with consolidated debt reduced to $52.3 billion from Q1’s $55.4 billion.
*Statistics sourced from the Q2 2023 investors presentation
The weekly chart reveals that prices are firmly above the 200-week simple moving average (SMA) and are now challenging the January 2022 highs. A break higher could set up a fight to overtake the 2021 high 278.57. Alternatively, a retracement below the 200-week SMA would put the psychologically important 200 level into focus. Combined with the positive earnings, BA may see some bullish follow-through in the coming weeks.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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