Boeing Co Smashes Earnings Estimates

Shares of Boeing rose as much as 4% after this morning’s earnings report, climbing as high as $137.80 per share in premarket trading

Boeing released the earnings results from its fourth quarter before opening bell this morning, posting non-GAAP core earnings of $2.31 per share on $24.47 billion in revenue, compared to last year’s revenue of $23.8 billion. Analysts had been expecting the aerospace company to post earnings of $2.11 per share on $23.9 billion in revenue.

In the same quarter last year, Boeing reported earn

Up-and-Coming Small- and Mid-cap Portfolio Managers #MICUS (Morningstar Conference)

InvestorsNotes from Laird Bieger of Baron Capital, Mark Wynegar of Tributary Capital Management, and Amy Zhang of Alger Funds' presentation from the 2020 Monringstar Investment Conference. Q2 2020 hedge fund letters, conferences and more Up-and-Coming Small- and Mid-cap Portfolio Managers Our manager research team has been publishing its semiannual Morningstar Prospects report for several years. Read More


Key metrics from Boeing’s earnings report

Net earnings were $2.02 per share, compared to $1.61 per share in the same quarter a year ago. For the full year, Boeing’s core earnings rose 22% to $8.60 per share, while revenue rose to $90.8 billion. GAAP earnings were $7.38 per share for the full year. Boeing’s backlog hit a new record of $502 billion, including $152 billion in net orders taken through the year, which is another record. Operating cash flow rose to $5 billion for the quarter.

Boeing’s Commercial Airplanes segment saw revenue rise 15% to $16.8 billion in the fourth quarter due to mix and higher deliveries. Revenue from the Defense, Space & Security segment fell to $7.6 billion from $8.6 billion last year. The company cited lower planned F-15 and C-17 deliveries.

“Strong operating performance in the final quarter of 2014 propelled us to some of our best-ever results and sealed a fifth consecutive year of core operating earnings growth,” said Boeing Chairman and CEO Jim McNerney in a statement this morning.

Boeing provides guidance

For this year, Boeing expects to see revenue of between $94.5 billion and $96.5 billion, which is well ahead of the FactSet consensus estimate of $93.25 billion for the full year. The aerospace contractor expects core earnings to be between $8.20 and $8.40 per share for the year, which is weak compared to the consensus estimate of $8.66 per share.

Boeing expects commercial deliveries to be between $750 and 755 for this year and operating cash flow to be more than $9 billion for the year.