Finance Boeing beats on earnings, raises guidance (BA)

(Endowed Blogs.)
Boeing beat Wall Street expetactations for third-quarter results on Wednesday on the back of its commercial aircraft deliveries. Boeing set a record with 202 commercial aircraft deliveries
Boeing raised its earnings and cash flow guidance for the year. The company increased its full-year earnings-per-share guidance to between $11.20 and $11.40 from between $11.10 and $11.30. It raised its core EPS guidance to between $9.90 and $10.10 from $9.80 and $10.00, which the company attributed to a lower-than-expected tax rate.

The company reported lower sales in its commercial and defense sectors compared to the third-quarter of 2016.
The aerospace and defense company reported core earnings per share of $2.72, above the estimate, according to a Bloomberg poll of analysts.
Boeing picked up a record of 202 commercial aircraft deliveries and enjoyed a backlog of 5,700 aircraft, the company said in a release.
Here are the key figures:

• Revenue: $24.39 billion, above the estimated $23.89 billion in the third quarter of 2016.
• Net income: $1.85 billion, down 19% from $2.27 billion in the third quarter of 2016.
• Boeing Global Services: This is the first time the company reported the unit separately into its own division. The division reported $3.57 billion in sales, up 2% from $3.5 billion in the third quater of 2016. Its operating margin was 14.2%, down from $14.9% in the same quarter of last year. Boeing has a target of $50 billion in services sales within the next five to 10 years.
• Commercial Aircraft: The company reported $14.98 billion in revenues, a 1% fall from $15.2 billion in the third quarter of 2016. Its earnings rose $1.48 billion, a 15% increase from $1.29 billion in the third quarter of 2016. Its operating margin was offset by delays in its KC-46 Tanker program, which cost the company $256 million. The company was slapped with three “deficiency reports” by the US Air Force in September.
• Defense: Boeing reported a fall in revenue of $5.47 billion, down 5% from $5.7 billion in the third quarter of 2016. Its earnings for the unit also fell, though its operating margin notched up slightly to 10.2% from 9.8%. The company said it was offset again by the KC-46 program, which has a cost growth of $73 million.

Despite some challenges, the company has beat estimates the past four quarters.
Boeing’s stock has more than doubled in the past year, climbing 69.64% year-to-date, which makes it the best performing stock in the Dow Jones Industrial Average. Boeing stock was slightly down 0.3% in pre-market trading.