The company reported a beat on its revenue estimates, but failed to beat its earnings per share estimates for the quarter. Shares of Boeing fell almost 10% in January after the company’s last earnings report, with investors reacting negatively to Boeing’s projections that full-year deliveries would fall due to weak 747 demand and falling 737 deliveries as the factory is upgraded in preparation for the MAX line.
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Boeing’s struggle to develop the first new USA tanker since the 1980s has added to skittishness among investors. This affected the company’s net earnings that were reported at $1.21 billion. However, the manufacturer exceeded forecasts in another key measure: Free cash flow of $483 million was better than the $357.6 million outflow anticipated by analysts.
The Boeing Company (BA) is expected to report Q1 earnings before market open (confirmed) on Wednesday 04/27/2016.
Shares were little changed at $133.34 at 11:12 a.m.in NY. That means that Boeing is still losing money on every 787 it sells. Output will rise to 12 aircraft a month this year and a monthly rate of 14 later this decade, both records for long-range aircraft.
As Boeing implemented its consolidation strategy during the quarter, it reported total costs and expenses of $19.09 billion as compared to same quarter a year ago expenses of $18.49 billion.
Dreamliner deliveries bucked that trend, with the 30 brought to customers during the first quarter matching the total from a year ago.
Higher year-over-year deliveries of military aircraft and continued solid operating performance on core production programs drove revenue growth and strong cash flow for Boeing in the first quarter. “The first quarter is typically one of the weakest for cash”, Herbert said. Total sales advanced to $22.6 billion, exceeding the $21.5 billion projected by analysts.
The company spent $3.5 billion to buy back 28.6 million shares during the quarter, about three times the volume some analysts anticipated. The Defense Space & Security (BDS) business includes BMA N&SS and GS&S.
The latest charge reflects added costs “to maintain schedule with concurrency between late-stage development testing and the transition to initial production”, Boeing said Wednesday.
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“Clearly the biggest challenge in the middle of it is 787”, Ferguson said by telephone. Boeing Co makes up approx 0.21% of Campbell Newman Asset Management Inc’s portfolio.Carnegie Capital Asset Management reduced its stake in BA by selling 9,604 shares or 17.33% in the most recent quarter. Commercial Airplanes’ bottom line continues to be hit by charges from the KC-46 tanker program ($162 million in the first quarter) and the 747 program ($70 million in the first quarter). Wiring issues and damage to a test aircraft’s fueling system erased any profit for the first of potentially $80 billion in planes. The investment management firm now holds 50,300 shares of Boeing Co which is valued at $6,591,815, the company said in a statement filed on April 19, 2016 with the SEC.Boeing Co makes up approximately 6.15% of Quantres Asset Management Ltd’s portfolio.
