Boeing Stock Report & Q1 Earnings

Key points

• Boeing Q1 earnings scheduled before the opening bell
• Investors expect to see some positivity fueled by commercial shipments
• Investors will pay more attention to the Boeing stock and the 737 issues

Boeing set to release Q1 earnings with investors eyeing to hear details of 737 issues

Boeing is scheduled to deliver its Q1 earnings before the opening bell. Investors will keep an eye on the Boeing stock as the 737 issues could bring nothing but bad news in the earnings. However, the company will bet on the improved deliveries in Q1.

In Q1, the company saw an uptick in the number of deliveries as the economy reopens, international and domestic travelling comes back beginning of the year. The Boeing stock price saw an upside move end of January to reach a record level of March 2020 at $280. The stocks had a massive sell-off in 2020 when international travelling was banned, and the company production was halt due to the pandemic-related lockdown. When international travelling resumes in 2021, the company is confident that its situation would change after they had recently resumed 737 Max.

The company’s Q1 deliveries surge by more than 50% due to commercial shipments, and defence shipments also rose more than 7%, and this was positive for Boeing company which had a very tough 2020 due to a halt in their production. This shows a big improvement compared to the 2020 decline in terms of deliveries, and deliveries of complete products play a big role in the company’s revenue growth.

However, investors will pay attention to details on the issues of 737 Max, which that company granted access to fly again in November 2020, which was great to the stock price that went to $240. Despite the exciting news from the company, Boeing’s stock price has been underperforming due to the renewed issues on their 737 Max, which was scheduled to be back in the sky. This is because the 737 Max is very important to the company to help lift up their growth. Anything that threatens the plane affects the future of Boeing.

Investors focus on the details of the Max issues, the number of planes affected, and how long the break-in service will last in order for the company’s profitable plan to be back. The revenue and profit figures could be the most important thing in the earnings call. Above all, it’s what the CEO says that will matter the most to the stock price.

Technical outlook

Boeing stock price had seen a massive rally which saw the stock hitting a price level of $278 for the first time since March 2020, when the pandemic-related lockdown affected the travelling sector, forcing Boeing to halt its production and pause its work. However, as the economy reopens, the company is resuming its work, and also, the contribution of commercial deliveries has been key to picking up the stock price.

Technically, the market stock made an asymmetrical formation after the price movement fell in mid-March when the company reported fault issues from the 737 Max, which is key to the company. The price will be waiting for the earnings report for direction. The bulls will be eyeing good news, and that will be good for the stock recovery, a break above the resistance trend could push the price up to $260. On the other side, the bears will be eyeing a breach on the support level, which has been holding the prices from moving lower.