Boeing released its latest quarterly earnings report before opening bell this morning, posting adjusted earnings of $1.62 per share on revenue of $24.5 billion, an 11% year over year increase. Analysts had been expecting earnings of $1.37 per share and $24.31 billion in revenue.
Key metrics from Boeing’s earning report
Reported earnings were $1.59 per share compared to last year’s $2.24 per share. Boeing’s commercial airplane revenue climbed 18% to $16.9 billion, which is slightly ahead of the consensus estimate of $16.8 billion. The company delivered a record number of commercial airplane deliveries to customers around the globe, which management said drove the strong sales growth. Boeing saw orders for 116 737 MAX airplanes during the second quarter and began assembling the first of these airplanes during the quarter.
Boeing’s Defense, Space & Security division saw revenue fall 3% year over year to $7.5 billion. The company had previously announced an after-tax charge of 77 cents per share or $536 million for its KC-46 Tanker program as a result of higher costs. Sales of Military Aircraft declined 1% year over year to $3.5 billion, while sales of Network and Space Systems increased 1% year over year. Global Services and Support saw an 8% decline in revenue to $2.1 billion.
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The backlog in the Defense, Space & Security segment was $58 billion, with 39% of that being orders from customers which are outside the U.S.
Boeing cuts guidance
Boeing also trimmed its guidance this morning, reducing its projections for adjusted earnings to a range of $7.70 and $7.90 per share. The previous range was between $8.20 and $8.40 per share. The company also trimmed its guidance for GAAP earnings per share to between $7.60 and $7.80 per share from between $8.10 and $8.30 per share. The defense contractor also reduced its guidance for operating margin to around 9% from the previous guidance of between 9.5% and 10%.
The company maintained its previous guidance for revenue of between $64.5 billion and $65.5 billion, however.
As of this writing, shares of Boeing were up 1.11% at $146.75 per share.