Boeing (NYSE:BA) stock climbed as much as 3.6 percent in morning trading on Wednesday after announcing strong first-quarter results. Revenues decreased 2.53 percent on the year to $18.89 billion, but still beat the average analyst estimate of $18.84 billion. Adjusted earnings increased 41.8 percent on the year to $1.73 per share, ahead of the average estimate of $1.48 per share.
Core operating earnings increased 5 percent to $1.87 billion, spurred by a 0.8 point increase in core operating margins to 9.9 percent. On a GAAP basis, earnings from operations declined 2 percent to $1.53 billion, while margins remained flat at 8.1 percent. Operating cash flow fell 37 percent in both core and GAAP measures to $524 million.
|Revenue ($) in millions||19,383||20,005||20,008||22,302||18,893|
|Core Operating Earnings ($) in millions||1,773||1,548||1,564||1,841||1,867|
|Diluted EPS ($)||1.22||1.27||1.35||1.28||1.44|
“Strong core operating performance fueled by productivity gains and solid program execution drove higher company earnings and double-digit operating margins in both major businesses during the quarter,” commented Chairman, President and CEO Jim McNerney…
“Our outlook for the year is positive,” continued McNerney. For the year, Boeing is looking for revenue between $82 and $85 billion. Core earnings are expected in a range between $6.10 and $6.30 per share, or in a range between $5.00 and $5.20 per share on a GAAP basis. Operating cash flow before pension contributions is expected to to be below $8 billion.
Commercial Aircraft Orders
Boeing reported that it booked just 28 net commercial aircraft orders in the first quarter. Backlog remains strong at about 4,000 units valued at $302 billion, but the soon-to-be-resolved fiasco with the 787 Dreamliner has definitely made its mark on the company.
“Commercial Airplanes worked around the clock to resolve the 787 battery issue while also successfully increasing production rates on the 737 and 777 programs. Defense, Space & Security continued to perform exceptionally well, meeting tough affordability goals while investing in future growth,” commented McNerney.
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