Boeing Co Shares Fall On Sales Miss, Nasdaq OMX Earnings Results Mixed

Boeing and Nasdaq OMX released their latest earnings reports before opening bell this morning. Boeing posted adjusted earnings of $2.01 per share on $21 billion in revenue, while Wall Street had been looking for earnings of $1.91 per share and $21.3 billion in sales. In last year’s first quarter, the airplane manufacturer reported $22.6 billion in revenue.

Nasdaq OMX Group reported non-GAAP earnings of $1.10 per share on $583 million in net revenues, representing a 21% increase in non-GAAP earnings per share and a 9% increase in net revenues. Analysts had been expecting $1.06 per share and $594.7 million.

Boeing shares fall

Boeing’s GAAP earnings rose to $2.34 per share from $1.83 per share in the year-ago quarter. The company delivered 210 commercial and defense aircraft during the first quarter. Its backlog increased to $480 billion, with $27 billion of that from net orders during the first quarter.

Michael Mauboussin: Here’s what active managers can do

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkThe debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More

Commercial Airplanes revenue ticked lower by 1% year over year to $14.3 billion on growth in services and lower planned deliveries of 737 aircraft as the company prepared to enter the 737 MAX into service next month. Defense, Space and Security revenues fell 18% to $6.5 billion. Boeing Military Aircraft revenue fell to $1.6 billion on lower planned deliveries, while Network and Space Systems revenue fell to $1.6 billion due to lower Commercial Crew volumes. Global Services & Support revenues fell to $2.3 billion due to contract timing. Backlog in the Defense, Space and Security segment was $63 billion.

Boeing boosted its full-year earnings guidance to between $10.35 and $10.55 per share from the previous outlook of $10.25 to $10.45 per share.

Shares of Boeing slumped in premarket trades, falling by as much as 1.48% to $180.80.

Nasdaq OMX shares rise

Nasdaq OMX’s GAAP earnings grew 27% year over year to 99 cents per share. Subscription and recurring revenues were 75% of the company’s total first quarter revenues. Non-trading segment revenues grew 10%, including a 5% increase organically. Market Technology segment revenue grew 18% year over year. Market Services net revenues fell organically due to lower industry trading volumes.

“I’m pleased Nasdaq was able to set new highs in terms of operating income and EPS, and deliver continued strong organic revenue growth across the non-transactional businesses, despite a challenging trading volume environment,” said President and Chief Executive Adena T. Friedman in a statement. “Importantly, we are seeing growth in areas where we’ve invested materially to innovate for the benefit of our clients, bringing them new or enhanced capabilities and efficiencies, in particular in the Market Technology, Information Services and Corporate Solutions businesses.”

Shares of Nasdaq OMX ticked higher in premarket trades, rising by as much as 0.85% to $71.13.