Boeing shares slip after its commercial airline revenue and 2018 EPS forecast disappoint
- Boeing reports earnings before the bell Wednesday.
- The U.S planemaker stuck to its full year 2018 earnings per share guidance of $14.30 to $14.50, below the $14.56 consensus analyst estimate according to Thomson Reuters.
Shares of Boeing declines after revenue in its commercial airline division fell short of Wall Street estimates. Its earnings per share forecast for 2018 also disappointed.
The aerospace giant’s second-quarter earnings beat Wall Street’s expected results for both the top and bottom lines. But Boeing stuck to its full year 2018 earnings per share guidance of $14.30 to $14.50, below the $14.56 consensus analyst estimate according to Thomson Reuters.
The company’s commercial airplane division reported revenue of $14.48 billion, coming in about $350 million lower than estimates, according to FactSet. Boeing’s core business also took a $307 million hit to its second-quarter operating margin, as the company said it recorded a charge “related to cost growth on the KC-46 Tanker” as Boeing pushes to certify the aircraft for the Air Force by October.
Shares of Boeing slipped more than 3 percent in premarket trading.
The U.S. planemaker added even more planes to its already immense backlog of orders, with the company reporting it now has orders for nearly 5,900 airplanes, worth nearly half a trillion dollars.
Expectations vs. results:
- Earnings: $3.33 per shares vs. $3.26 per share forecast by Thomson Reuters.
- Revenue: $24.3 billion vs. $24.04 billion forecast by Thomson Reuters.
Boeing continues to expect at least 810 airplane deliveries this year, which would be a record for the company. Boeing delivered 378 airplanes in the first half of this year, so the company is only 46 percent of the way to its closely-watched goal.
The company’s stock is up over 21 percent this year as of Tuesday’s close of $358.27 per share, continuing a climb of nearly 70 percent over the last year.
Boeing is steadily expanding its the range of aircraft it offers. A joint venture with Embraer announced July 5 gave Boeing a controlling stake in the Brazilian planemaker’s commercial aircraft arm. The nearly $5 billion deal is set to make Boeing the market leader in regional passenger jets, even as it moves closer to launching its long-anticipated 797 aircraft.
The U.S. plane builder expanded its order book in the second quarter after bringing home nearly $100 billion in deals at the Farnborough International Airshow.
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