Sales Slump Couldn’t Keep Boeing Grounded This Quarter

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.

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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.

Mar-12 Jun-12 Sep-12 Dec-12 Mar-13
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…

2013 Outlook:

“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.

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“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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