Shares of Boeing (BA +2.76%) climbed above $200 recently, even after it reported a slight dip in monthly deliveries. In August, Boeing delivered 51 aircraft, a 10.5% drop from a year earlier. Still, Boeing's total number of aircraft deliveries year to date is its best result since 2018. Investors are looking past the August dip because the bigger, longer-term picture has improved.
NYSE: BA
Key Data Points
Boeing hit $24.5 billion in revenue in the second quarter. This represents 8% growth from the year prior. Adjusted free cash flow turned positive in a big way, hitting $631 million against the negative $200 million from last year's second quarter.
Boeing's backlog stands at an incredible $715 billion, with more than 6,200 commercial aircraft in the pipeline. Boeing's turnaround plan appears to be taking hold. CEO Kelly Ortberg has stressed that the aircraft manufacturer is rebuilding trust among customers, regulators, and suppliers alike. This is paving the foundation for even more growth.
Image source: Getty Images.
Boeing's stock is still down by more than 5% year to date as of this writing, and the company faces plenty of risks. Boeing will need to continue repairing trust among stakeholders and deliver aircraft on time while preventing its capital expenditures from ballooning.
For long-term investors, Boeing appears to be fairly priced. Though its August deliveries slipped, the key point is not to look past the company's overall progress. Its improving metrics and high revenue visibility set patient shareholders up to be rewarded in the coming years.
