Twelve months ago Boeing (BA) investors would have been very happy to hear that the 737 Max would be back flying, and that daily passenger numbers would be up tenfold from the depths of the Covid crisis. A stock price around $250 would also have made them quite happy, given the $150 share price about a year ago. It has certainly helped that BA stock was part of the “reopening trade” that has swept Wall Street.
Despite the uplifting news above, BA’s shares have been lagging recently, mostly due to the renewed issues that have popped up around the 737 Max. The fact is that this plane is absolutely necessary to drive Boeing’s growth. Any factors that affect the plane’s future, implicitly affect Boeing’s future.
There is a lot to look forward to in this Wednesday’s earnings release. Investors will want to get more details on the new Max issues, the number of planes affected, and how long the break-in service might last. For once, the revenue and profit numbers for the last quarter might not be the most interesting part of the earnings call.