Boeing earnings beat expectations but stock slumps; commercial airplanes misses on revenue
Shares of Boeing Co. slumped 2.7% in premarket trade Wednesday, after the aerospace and defense giant beat second-quarter profit and revenue expectations, although its largest business segment–commercial airplanes–came up a bit short on sales. Net earnings rose to $2.20 billion, or $3.73 a share, from $1.75 billion, or $2.87 a share, in the same period a year ago. Excluding non-recurring items, core earnings per share came to $3.33, above the FactSet consensus of $3.25. Revenue grew 5% to $24.26 billion, topping the FactSet consensus of $24.04 billion. Commercial airplanes revenue increased 1% to $14.48 billion, missing the FactSet consensus of $14.86 billion, while Boeing’s second-largest business segment by sales, defense, space and security, saw revenue rise 9% to $5.59 billion to beat expectations of $5.40 billion. Looking ahead, Boeing raised its 2018 revenue guidance range to $97 billion to $99 billion–the FactSet consensus of $98 billion–from $96 billion to $98 billion, and affirmed its core EPS outlook of $14.30 to $14.50, which is below the FactSet consensus of $14.53. The stock has soared 21.5% year to date through Tuesday, while the Dow Jones Industrial Average has tacked on 2.1%.