Boeing Earnings: Flies Past Estimates on Double-Digit Revenue Growth

S&P 500 (NYSE:SPY) component The Boeing Company (NYSE:BA) reported its results for the third quarter. Boeing is an aerospace firm that designs, develops, manufactures, sells, and supports commercial jetliners, military aircraft, satellites, missile defense, and human space flight services.

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The Boeing Company Earnings Cheat Sheet

Results: Net income for the aerospace/defense fell to $1.03 billion ($1.35 per share) vs. $1.1 billion ($1.46 per share) a year earlier. This is a decline of 6% from the year-earlier quarter.

Revenue: Rose 12.9% to $20.01 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Boeing Company beat the mean analyst estimate of $1.12 per share. It beat the average revenue estimate of $19.37 billion.

Quoting Management: “Strong core operating performance drove increased earnings in both our major businesses, along with higher overall revenues, improved cash flow, and solid earnings per share even as pension headwinds rose,” said Boeing Chairman, President and one Chief Executive Officer Jim McNerney. “Our Defense, Space & Security business maintained double-digit margins in a challenging environment while Commercial Airplanes continued to build momentum with 787 deliveries and 737 MAX orders. Underpinned by our solid performance to date and positive outlook, we are raising our year-end guidance for revenue, earnings and operating cash flow. We remain well positioned for long-term growth with a clear focus on quality, productivity and disciplined program execution,” McNerney said.

Key Stats:

Last quarter’s profit decreases breaks a four-quarter run of profit increases. In the second quarter, net income rose 2.8% from the year earlier, while the figure increased 57.5% in the first quarter, 19.7% in the fourth quarter of the last fiscal year and 31.2% in the third quarter of the last fiscal year.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 16 cents in the second quarter, by 16 cents in the first quarter, and by 29 cents in the fourth quarter of the last fiscal year.

Revenue has risen for the last four quarters. Revenue increased 20.9% to $20 billion in the second quarter. The figure rose 30% in the first quarter from the year earlier and climbed 18.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the fourth quarter is $1.12 per share, dropping from $1.13 a month ago. The average estimate for the fiscal year is $4.71 per share, a rise from $4.67 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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