Boeing Co Earnings Results Beat Estimates, Boosting Its Stock

Boeing Co (NYSE:BA) released its Q4 2017 earnings report before opening bell this morning. Boeing earnings came in at $4.80 per share on a non-GAAP basis, while revenue amounted to $25.37 billion. Analysts had been expecting $2.89 per share in earnings on $24.64 billion in sales. In the same quarter a year ago, the airplane manufacturer reported $23.29 billion in revenue.

Boeing earnings benefit from tax reform

On a GAAP basis, Boeing earnings per share rose to $5.18 from $2.59 per share in the year-ago quarter. The tax reform bill had a favorable impact of $1.74 per share, the company added.

Commercial Airplane sales grew 8% year over year to $15.47 billion in Q4 2017. Analysts had been expecting $15.5 billion from the segment. Boeing said it delivered 209 commercial airplanes in Q4 2017, versus the 185 it delivered in Q4 2016. The company also booked 414 net orders for commercial airplanes during Q4 and backlog is still strong at more than 5,800 airplanes worth $421 billion.

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Defense, Space & Security revenue grew 5% to $5.54 billion, coming up just shy of the consensus at $5.57 billion. In Q4, Boeing signed a U.S. Air Force contract for 36 advanced F-15 fighter aircraft for Qatar. The segment’s backlog stood at $50 billion at the end of the quarter, of which 40% of the orders were placed by international customers.

Global Services revenue jumped 17% to $4 billion, beating the consensus at $3.7 billion. During Q4, the company won an F-15 Qatar Sustainment contract and signed a 787 landing gear exchange agreement with All Nippon.

Being releases 2018 guidance

For 2018, management expects Boeing earnings to be between $13.80 and $14 per share on a non-GAAP basis, which is much stronger than the consensus of $11.91 per share. They expect GAAP earnings to be between $15.90 and $16.10 for the year. The airplane company expects revenue to be between $96 billion and $98 billion for the full year, compared to the consensus of $93.4 billion.

Boeing said its guidance factors in between 810 and 815 commercial deliveries and $59.5 billion to $60.5 billion Commercial Airplane revenue for this year. Boeing’s 2018 guidance also includes $21.5 billion to $22.5 billion in Defense, Space & Security revenue and $15 billion to $15.5 billion Global Services revenue.

Following the Boeing earnings release, the company’s stock jumped by more than 5% to as high as $355.51 in premarket trades this morning.