Boeing Lifts The Dow After Blowout Earnings


Boeing Co. (NYSE:BA)

Shares of Boeing soared Wednesday after the aerospace giant reported fiscal 2018 fourth-quarter results above estimates of Wall Street analysts. The company posted a record high revenue for the full year, thanks to impressive airplane deliveries.

Boeing also provided a strong earnings outlook for fiscal 2019, signaling that the airplane manufacturer is optimistic it can conquer supplier restraints that tottered production sometime last year.

Boeing stock was up more than 5% in pre-market trading immediately following the earnings report. As of 10:45 a.m., the stock was changing hands at $388.61 after gaining $23.70, or 6.49%, while the Dow Jones Industrial Average was up 286.32 points, or 1.16%.

BA Earnings & Outlook

Boeing posted fiscal fourth-quarter net income of $3.42 billion, or $5.93 per share, compared with $3.32 billion, or $5.49 per share, in the same period a year ago. Earnings, adjusted for one-time items, came to $5.48 per share, compared with $5.07 per share. Analysts polled by Refinitiv had projected adjusted earnings of $4.57 per share.

Revenue climbed 14% from a year earlier to $28.34 billion, crushing expectations in a Refinitiv poll of analysts by $1.48 billion. Boeing reported a record high year-end revenue of $101.1 billion. Fourth-quarter revenue from the company’s commercial airplanes segment came to $17.31 billion, up 12% smashing the analysts’ consensus of $17.12 billion.

Global services segment generated revenues of $4.89 billion, up 29% year-on-year and above Wall Street estimates of $4.12 billion. Revenue from its defense, space and security business was $6.11 billion, also ahead estimates of $5.60 billion.

Looking ahead, the aerospace giant hinted full-year 2019 earnings should be between $19.90 to $20.10 per share, ahead of estimates of $18.30 per share by Refinitiv. Boeing sees revenue of $109.5 billion to $111.5 billion, well above expectations of $107.3 billion.

Boeing CEO Comments

“Across the enterprise our team delivered strong core operating performance and customer focus, driving record revenues, earnings and cash flow and further extending our global aerospace industry leadership in 2018,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg.

“Our financial performance provided a firm platform to further invest in new growth businesses, innovation and future franchise programs, as well as in our people and enabling technologies. In the last 5 years, we have invested nearly $35 billion in key strategic areas of our business, all while increasing cash returns to shareholders.”

Boeing Co. Profile

Boeing is an aerospace company and manufacturer of commercial jetliners, and defense, space and security systems. The Company’s products and tailored services include commercial and military aircrafts, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, as well as performance-based logistics and training.

Its broad range of capabilities includes integrating military platforms, defense systems, and warfighters through network-enabled solutions, creating advanced technology solutions and arranging innovative customer-financing options. – Craft