We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing (BA) Beats on Earnings in Q1, Hikes '18 EPS View
Read MoreHide Full Article
The Boeing Company (BA - Free Report) reported adjusted earnings of $3.64 per share for first-quarter 2018, beating the Zacks Consensus Estimate of $2.59 by 40.5%. The quarterly bottom line reflected an improvement of 68% from $2.17 in the year-ago quarter.
Excluding one-time items, the aerospace giant reported GAAP earnings of $4.15 per share, up 63% from $2.54 per share in the year-ago quarter.
Revenues
The company's first-quarter revenues amounted to $23.38 billion in the quarter, beating the Zacks Consensus Estimate of $22.32 billion by 4.8%. The top line also improved 6% year over year, driven by improved revenues from all segments, except Boeing Capital.
The Boeing Company Price, Consensus and EPS Surprise
Backlog at the end of first-quarter was up to $486.2 billion from $474.8 billion at the end of 2017. Reported backlog included $34 billion of net orders during the reported quarter.
Quarterly Segment Results
Commercial Airplane Segment: The segment saw a 5% rise in revenues to $13.65 billion, on higher deliveries and mix. Operating margin for the quarter expanded 430 basis points (bps) year over year to 11%.
Boeing reported delivered 184 commercial planes during the quarter, which was up 9%.
A look at Boeing’s first-quarter order details reveals that the company booked 221 net commercial orders (accounting for cancellations). Backlog for this segment was valued at $415 billion.
Boeing Defense, Space & Security (BDS): The segment witnessed an approximate 13% year-over-year increase in first-quarter revenues to $5.76 billion, driven by C-17, international fighters, and weapons volume. Operating margin for the quarter expanded 60 bps to 11.3%.
Backlog at BDS was $50 billion, 36% of which comprised orders from international clients.
Global Services: The segment saw 8% growth in revenues to $3.94 billion, reflecting growth in commercial services. Operating margin for the quarter contracted 80 bps year over year to 16.3%, on account of product and services mix.
Boeing Capital Corporation (BCC): Boeing Capital reported quarterly revenues of $65 million compared with $92 million in the year-ago quarter. The segment’s earnings were $20 million compared with $39 million a year ago.
At the end of first-quarter, BCC's portfolio balance was $2.9 billion.
Financial Condition
Boeing exited the first quarter with cash and cash equivalents of $9.24 billion and short-term and other investments of $0.66 billion. At year-end 2016, the company had $8.81 billion of cash and cash equivalents and $1.18 billion of short-term and other investments. Long-term debt was $10.47 billion at the end of first quarter, up from $9.78 billion at 2076-end.
Boeing generated $3.14 billion of operating cash flow at the end of first-quarter, up 49.5% year over year. Free cash flow was $2.74 billion at first-quarter 2018 end compared with free cash of $1.63 billion at the end of 2017’s first quarter.
Guidance
Boeing raised its 2018 earnings guidance. The company currently expects its adjusted or core earnings per share in the range of $14.30-$4.50, up from prior guidance range of $13.80-$14.00. GAAP earnings are currently projected in the range of $16.40-$16.60, compared to earlier range of $15.90-$16.10 per share.
The company continues to expect 2018 revenues in the range of $96-$98 billion.
Commercial Airplanes' 2018 delivery expectations are reiterated in the band of 810 to 815 with revenues still projected in the range of $59.5-$60.5 billion. Operating margin is now anticipated to be around 11.5%, compared to earlier expectation of more than 11%.
The company continues to project 2018 defense revenues in the $21.5-$22.5 billion range. Operating margin is still anticipated to be around 11%.
Boeing Capital expects the aircraft finance portfolio to remain stable. The company still anticipates its segment revenues to be approximately $0.2 billion.
Boeing's 2018 R&D is still forecasted to be approximately $3.7 billion. Capital expenditures for 2018 is also expected to remain approximately $2.2 billion.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2018 earnings from continuing operations of $4.02 per share, which surpassed the Zacks Consensus Estimate of $3.35 by 20%. The earnings figure was higher than the year-ago figure of $2.69 per share, by 49%.
Textron Inc. (TXT - Free Report) reported first-quarter 2018 earnings from continuing operations of 72 cents per share, which surpassed the Zacks Consensus Estimate of 46 cents by 56.5%. Notably, the bottom line was up 94.6% from 37 cents in the year-ago quarter.
Upcoming Peer Release
Embraer S.A. (ERJ - Free Report) has an Earnings ESP of +450.00%. The company is slated to release first-quarter results on Apr 27.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Boeing (BA) Beats on Earnings in Q1, Hikes '18 EPS View
The Boeing Company (BA - Free Report) reported adjusted earnings of $3.64 per share for first-quarter 2018, beating the Zacks Consensus Estimate of $2.59 by 40.5%. The quarterly bottom line reflected an improvement of 68% from $2.17 in the year-ago quarter.
Excluding one-time items, the aerospace giant reported GAAP earnings of $4.15 per share, up 63% from $2.54 per share in the year-ago quarter.
Revenues
The company's first-quarter revenues amounted to $23.38 billion in the quarter, beating the Zacks Consensus Estimate of $22.32 billion by 4.8%. The top line also improved 6% year over year, driven by improved revenues from all segments, except Boeing Capital.
The Boeing Company Price, Consensus and EPS Surprise
The Boeing Company Price, Consensus and EPS Surprise | The Boeing Company Quote
Total Backlog
Backlog at the end of first-quarter was up to $486.2 billion from $474.8 billion at the end of 2017. Reported backlog included $34 billion of net orders during the reported quarter.
Quarterly Segment Results
Commercial Airplane Segment: The segment saw a 5% rise in revenues to $13.65 billion, on higher deliveries and mix. Operating margin for the quarter expanded 430 basis points (bps) year over year to 11%.
Boeing reported delivered 184 commercial planes during the quarter, which was up 9%.
A look at Boeing’s first-quarter order details reveals that the company booked 221 net commercial orders (accounting for cancellations). Backlog for this segment was valued at $415 billion.
Boeing Defense, Space & Security (BDS): The segment witnessed an approximate 13% year-over-year increase in first-quarter revenues to $5.76 billion, driven by C-17, international fighters, and weapons volume. Operating margin for the quarter expanded 60 bps to 11.3%.
Backlog at BDS was $50 billion, 36% of which comprised orders from international clients.
Global Services: The segment saw 8% growth in revenues to $3.94 billion, reflecting growth in commercial services. Operating margin for the quarter contracted 80 bps year over year to 16.3%, on account of product and services mix.
Boeing Capital Corporation (BCC): Boeing Capital reported quarterly revenues of $65 million compared with $92 million in the year-ago quarter. The segment’s earnings were $20 million compared with $39 million a year ago.
At the end of first-quarter, BCC's portfolio balance was $2.9 billion.
Financial Condition
Boeing exited the first quarter with cash and cash equivalents of $9.24 billion and short-term and other investments of $0.66 billion. At year-end 2016, the company had $8.81 billion of cash and cash equivalents and $1.18 billion of short-term and other investments. Long-term debt was $10.47 billion at the end of first quarter, up from $9.78 billion at 2076-end.
Boeing generated $3.14 billion of operating cash flow at the end of first-quarter, up 49.5% year over year. Free cash flow was $2.74 billion at first-quarter 2018 end compared with free cash of $1.63 billion at the end of 2017’s first quarter.
Guidance
Boeing raised its 2018 earnings guidance. The company currently expects its adjusted or core earnings per share in the range of $14.30-$4.50, up from prior guidance range of $13.80-$14.00. GAAP earnings are currently projected in the range of $16.40-$16.60, compared to earlier range of $15.90-$16.10 per share.
The company continues to expect 2018 revenues in the range of $96-$98 billion.
Commercial Airplanes' 2018 delivery expectations are reiterated in the band of 810 to 815 with revenues still projected in the range of $59.5-$60.5 billion. Operating margin is now anticipated to be around 11.5%, compared to earlier expectation of more than 11%.
The company continues to project 2018 defense revenues in the $21.5-$22.5 billion range. Operating margin is still anticipated to be around 11%.
Boeing Capital expects the aircraft finance portfolio to remain stable. The company still anticipates its segment revenues to be approximately $0.2 billion.
Boeing's 2018 R&D is still forecasted to be approximately $3.7 billion. Capital expenditures for 2018 is also expected to remain approximately $2.2 billion.
Zacks Rank
Boeing currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2018 earnings from continuing operations of $4.02 per share, which surpassed the Zacks Consensus Estimate of $3.35 by 20%. The earnings figure was higher than the year-ago figure of $2.69 per share, by 49%.
Textron Inc. (TXT - Free Report) reported first-quarter 2018 earnings from continuing operations of 72 cents per share, which surpassed the Zacks Consensus Estimate of 46 cents by 56.5%. Notably, the bottom line was up 94.6% from 37 cents in the year-ago quarter.
Upcoming Peer Release
Embraer S.A. (ERJ - Free Report) has an Earnings ESP of +450.00%. The company is slated to release first-quarter results on Apr 27.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>