Boeing increases revenue predictions after strong third quarter

Boeing increases revenue predictions after strong third quarter

Boeing has reported third-quarter GAAP earnings per share of $3.60 and core earnings per share of $3.51.

The figures reflect the overall solid execution on production programs and services, favourable tax items ($0.98 per share), and timing of aircraft deliveries.

At the same time, revenue guidance has been increased $500 million to between $93.5 and $95.5 billion on higher commercial deliveries.

GAAP earnings per share guidance for 2016 has been increased to between $7.10 and $7.30 from $6.40 and $6.60 and core earnings per share guidance has been increased to between $6.80 and $7.00 from $6.10 and $6.30 to reflect a favourable $0.70 per share tax basis adjustment.

The third quarter favourable tax adjustment for a 2011-2012 tax settlement of $0.28 per share was previously announced in the second quarter of 2016 and was reflected in prior guidance.

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“Solid operating performance across our commercial and defence and space businesses in the third quarter again generated strong cash flow for Boeing, which continues to fuel investments in our future and enable us to deliver compelling returns to our shareholders,” said Boeing chairman Dennis Muilenburg.

“We also captured key orders, reinforcing the strength of our large and diverse order backlog.

“We achieved key milestones on the 737 MAX, 787-10 and other development programs, including the first KC-46 production contracts.

“Our teams remain focused on completing these development efforts and delivering better capabilities and economics to customers around the world.

“We remain on track to deliver on our full-year commitments.

“At the same time, we are positioning Boeing for further growth through our intense focus on productivity, quality and safety across the company.”