Company News

RPT-BUZZ-PREVIEW: Boeing shares at high altitude ahead of results

(Repeats Buzz first published Tuesday, no changes to text)

** Boeing shares up 1.4 pct at $266.03, fresh record high, ahead of co’s qtrly report expected before the bell Weds

** Consensus Q3 analyst estimates call for co to report $23.92 bln rev, roughly flat yr/yr, and $2.66 adj EPS, a 24.2 pct yr/yr drop (Thomson Reuters data)

** Investors may focus on how recent Airbus SE /Bombardier agreement will impact BA’s trade dispute with Bombardier

** Last week, Airbus agreed to buy a majority stake in Bombardier CSeries jetliner program

** Baird analysts said in a note they expect Boeing to beat expectations and that earnings, buybacks and other factors should continue to support the stock

** BA shares have been on a roll for more than a year, but the move took flight following the Republican sweep in the Nov U.S. elections on expectations for more defense spending

** YTD, BA up ~71 pct this year, is the top pct performer in the DJI, which is up ~19 pct; BA responsible for about a fifth of DJI’s YTD gain

** Boeing EPS has beaten estimates in 7 of the last 8 reporting periods, and surpassed rev expectations in 6

** Analyst opinion skewed bullish (14 “buy” or stronger ratings, 10 “hold” and no “sells”). Median PT $293.50

** BA options imply 3.9 pct swing in either direction by Fri, slightly below 4.3 pct one-day avg move for the shares on the day of earnings, for the last 8 qtrs, per Trade Alert data (Caroline Valetkevitch, additional reporting by Saqib Iqbal Ahmed)