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Boeing shares climb on robust annual performance and Akasa Air deal

EditorAhmed Abdulazez Abdulkadir
Published 01/20/2024, 07:12 PM
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CHICAGO - Boeing (NYSE:BA) Co. saw its stock price ascend to $211.61 before settling at $203.06, buoyed by a robust annual performance and a substantial order from India's Akasa Air for 150 Boeing 737 Max airplanes. The aerospace giant, with a market capitalization of approximately $128 billion, has weathered a decline in yearly sales growth over the past five years. However, this fiscal year, Boeing reported a nearly 50% increase in earnings per share (EPS), signaling a turnaround despite a recent quarterly EPS shortfall.

The company's financial health has faced challenges, including liquidity issues and market volatility. Yet, insider trading activity reveals a mix of sales and purchases by executives, indicating varied perspectives on the company's future trajectory.

Boeing's substantial order from Akasa Air has been a significant contributor to its annual performance, with net orders totaling 1,314 and a considerable backlog, showcasing the company's enduring appeal in the commercial aviation market.

InvestingPro Insights

Boeing Co .'s recent performance has garnered attention, and key metrics from InvestingPro provide additional insights into the company's financial standing. With a market capitalization of $130.08 billion and a notable revenue growth of 23.34% over the last twelve months as of Q3 2023, Boeing demonstrates significant scale and growth potential. However, the company's profitability remains a concern, as reflected by a negative P/E ratio of -45.71 and an adjusted P/E ratio of -100.84 for the same period. Despite these challenges, Boeing has experienced a strong return over the last three months, with a price total return of 19.43%.

InvestingPro Tips suggest that Boeing is a prominent player in the Aerospace & Defense industry, but it suffers from weak gross profit margins of 11.44%. Analysts have revised their earnings upwards for the upcoming period, indicating potential optimism in the company's ability to recover. Nevertheless, they do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month, with a price total return of -17.38%.

For investors looking to dive deeper into Boeing's financials and future prospects, InvestingPro offers additional tips. Currently, there are 8 more InvestingPro Tips available for Boeing, which can be accessed through a subscription. With the New Year sale, subscribers can enjoy up to 50% off, plus an extra 10% discount on a 2-year InvestingPro+ subscription with the code SFY24, or on a 1-year subscription with the code SFY241. These resources could be invaluable for making informed investment decisions in the volatile aerospace sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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