Boeing raises revenue guidance following strong third quarter

Boeing raises revenue guidance following strong third quarter

The Boeing Company has reported third-quarter revenue of $25.1 billion, driven by higher defence volume and services growth.

GAAP earnings per share increased to $4.07 and core earnings per share (non-GAAP) increased to $3.58 primarily driven by strong operating performance at commercial airplanes and a tax benefit related to a tax settlement ($0.71 per share).

Boeing delivered strong operating cash flow of $4.6 billion, repurchased $2.5 billion of shares, and paid $1 billion of dividends.

The company’s revenue guidance increased $1 billion to between $98 and $100 billion, driven by defence volume and services growth, inclusive of the KLX acquisition.

Operating cash flow guidance is reaffirmed at $15 to $15.5 billion.

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“Our teams continued to perform at a high level during the quarter, driving solid operating performance and robust cash generation, and continuing to deliver on our One Boeing advantage by bringing the best of Boeing to our customers,” said Boeing chairman, Dennis Muilenburg.

“Within the commercial airplanes business, the 777X static test airplane was completed and moved into test setup and the team’s focus on execution across our production programs continued to drive outstanding performance and strong operating margins.”

He concluded: “This strong underlying performance, along with growth across our businesses we’ve seen throughout the year, give us confidence to raise our 2018 revenue and earnings guidance and reaffirm our operating cash flow guidance.”