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- 1 BA stock might rally as the week-long strike at Spirit AeroSpace, a key Boeing supplier, ends.
- 2 Workers are to return from July 5, 2023, as the strike ends.
Finally, the strike at Spirit AeroSystem (NYSE: SPR), a key supplier to The Boeing Company, is over, and BA Stock rallied 3.50% in a week. Members of the International Association of Machinists (IAM) along with the Aerospace Workers Union voted in favor of a deal with Spirit AeroSystems on June 29, ending the headache for companies and the aerospace industry, which had started on June 22, 2023.
The Boeing Company (BA Stock) – Financial Analysis
The strike had caused a shutdown at Spirit AeroSytems Holdings Inc., which supplies 70% fuselages of Boeing 737 Max, along with the nose section of the 787 Dreamliner and engine pylons for the famous Airbus A220 Jet. The ending of the strike was crucial for the aerospace giant.
Boeing is preparing to speed up the production process for Max and Dreamliners aircrafts, which are two crucial cash sources for the company. Workers are set to be back on the production line on July 5, 2023. 63% of the workers voted in favor of the new four-year contract proposal, which significantly improves wages, overtime rules, and prescription drug coverage.
At press time, the BA stock is trading at $211.16 with a slight drop of 0.32%. Previous close and open were at $211.83 and 213.14, respectively. The trailing twelve-month (ttm) earnings per share come at minus $6.93. With an average volume of 5.88 million shares, the market cap is $127.033 billion.
Analysts placed a 2.63 rating for moderate buy and estimated a price target at $211.60 with a 4.90% upside. The 52-week change comes with a whopping rate of 5,334.79%. The company’s share price rallied 3.76% monthly, 9.44% YTD, and 57.23% yearly.
Source: MarketBeat; BA
The last earnings were reported on April 26, 2023, where the reported revenue of $17.921 billion surpassed the estimated value of $17.516 billion by 2.31%. The surprise came at a surplus of $404.843 million. The subsequent earnings are scheduled to be reported on July 26, 2023, with an estimated revenue of $17.375 billion.
Considering March 2023’s data, the revenue swelled by 28.09% to $17.92 billion, while the revenue (ttm) is said to be $70.54 billion. The revenue per share (ttm) comes at $117.98, and the quarterly revenue growth year-over-year (YoY) is reported to have gained 28.10%.
The operating expenses jumped by 50.36% to $1.90 billion, but the operating margin only increased by 0.14%. Gross profit (ttm) comes at $5.77 billion, while the profit margin drops by 5.86%. Total cash in hand at the end of the most recent quarter (mrq) is $14.77 billion, and total debt is reported to be $55.39 billion.
The Boeing Company (BA Stock) – Candle Exploration
Since March 2022, the BA share price action has formed a double-bottom pattern, which ended at the start of 2023. Since then, the price has been consolidating in a narrow range above the pattern’s neckline. Although this is a good sign, a possible rally would occur if the price breaks the supply zone and stabilizes there.
Source: TradingView; BA
The upward trajectory of the EMA hints towards a positive momentum, and the relative strength index (RSI) gaining to 51.41 indicates strength. The end of the strike and the proposed increase in production could cause the price action to rally ahead. However, if the price drops below the neckline at S1, the price might bounce off S2 before dropping further.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
