Shares of Boeing Company (BA) rose the most in eleven weeks during the trading session in New York on Wednesday after the plane maker reported exceptionally strong first-quarter earnings, well above Wall Street estimates. Additionally, strong commercial jet sales prompted the company to revise up its cash flow and earnings projections.
Boeing shares closed higher for the second time in the past five trading sessions on Wednesday. It has also been the sharpest daily surge since February 8th. The stock went up 4.19% ($13.80) to $342.86, with the intraday high and the intraday low being at $344.89 and $330.72 respectively.
In the week ended on April 22nd the shares of the aircraft maker added 2.85% to their market value compared to a week ago, which marked a second consecutive period of gains. It has also been the best performance since the week ended on March 11th.
The stock has extended its advance to 4.57% so far during the current month, following a 9.48% slump in March. The latter has been the largest monthly retreat since January 2016.
For the entire past year, the shares of the NYSE-listed plane maker soared 89.43% following another 7.67% surge in 2016.
Boeing said that deliveries of commercial aircraft had increased 9% to 184 during the quarter ended on March 31st, supported by higher demand from carriers seeking to respond to a boom in passenger air travel.
In 2017, the plane maker sold the record 763 jets.
Boeings core operating margin was reported to have increased to 10.7% during the first quarter from 8.5% in the year-ago period.
Total revenue went up 6.5% year-on-year to $23.38 billion during the latest quarter, thus, outstripping the median analyst estimate ($22.26 billion).
Excluding pension costs, the company earned $3.64 per share during the quarter ended on March 31st from $2.17 per share in the year-ago three-month period. In comparison, analysts on average had expected adjusted earnings of $2.58 per share.
“It’s not every day that a mega cap company beats consensus by 40 percent. In normal circumstances we would expect a very positive share price response”, Vertical Research Partners Robert Stallard wrote in a client note, cited by Reuters.
Boeing also said it now expected its full-year 2018 operating cash flow to be within the range of $15.0 billion and $15.5 billion. The company had previously forecast cash flow of approximately $15 billion.
At the same time, Boeing revised up its full-year core earnings projection to a range of $14.30-14.50 per share from a range of $13.80-$14.00 per share, as expected previously.
The NYSE-listed manufacturer also said that monthly production on its 767 program would be boosted to 3 jets from a rate of 2.5 jets, starting in 2020.
According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $400.00, with a high estimate of $500.00 and a low estimate of $289.00. The median estimate is a 16.67% surge compared to the closing price of $342.86 on April 25th.
The same media also reported that 15 out of 28 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 10 – as “Hold”.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Boeing stock are presented as follows:
R1 – $344.16
R2 – $345.46
R3 (Range Resistance – Sell) – $346.76
R4 (Long Breakout) – $350.65
R5 (Breakout Target 1) – $355.20
R6 (Breakout Target 2) – $357.55
S1 – $341.56
S2 – $340.26
S3 (Range Support – Buy) – $338.96
S4 (Short Breakout) – $335.07
S5 (Breakout Target 1) – $330.52
S6 (Breakout Target 2) – $328.17
By using the traditional method of calculation, the weekly levels of importance for Boeing Company (BA) are presented as follows:
Central Pivot Point – $336.23
R1 – $344.85
R2 – $351.02
R3 – $359.64
R4 – $368.25
S1 – $330.06
S2 – $321.44
S3 – $315.27
S4 – $309.09
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