Boeing Stock Flat Ahead of Earnings As Retail Investors Remain Cautious

Boeing Co. ($BA) shares were trading flat as markets opened on Tuesday with the aerospace giant set to report its second-quarter results on Wednesday.

Boeing’s stock saw a brief rally on Monday after the union announced it had reached a ‘tentative agreement’ with the company over the weekend.

Workers are set to vote on the new proposal on Wednesday, which includes a substantial 35% wage increase over the next four years and other benefit enhancements. A majority approval is required for the deal to end the strike.

However, Boeing’s production has already faced setbacks due to increased scrutiny of its 737-MAX 9 fleet, which was grounded following a high-profile plug blowout in January and various whistleblower complaints.

Amid heavy criticism and a slowdown in operations, Boeing’s financial performance is expected to suffer.

Analysts predict the company will report revenue of $17.81 billion for the second quarter, marking a 3% decline from the previous year. Profitability is also projected to suffer, with an adjusted loss per share expected to reach $10.35.

In the first quarter, Boeing missed estimates with a loss per share of $2.90 — 52% greater than anticipated — and reported revenue of $16.87 billion, which fell 2.7% short of the estimated $17.34 billion.

Boeing hasn’t delivered a full-year profit since 2018.

Retail sentiment on Stocktwits remains in the ‘neutral’ (51/100) territory as investors await signs of progress from the planemaker amid significant losses stemming from an ongoing labor union strike that has halted production.

The world’s largest planemaker, second only to Airbus, also pleaded guilty last week to a criminal fraud conspiracy charge and agreed to pay at least $243.6 million after breaching a 2021 consent decree with the Department of Justice.

Boeing’s stock is down about 37% this year and has lost 12% of its value over the last 12 months. 

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