Boeing (BA) Beats On Q2 Earnings, Raises '17 EPS Guidance
Zacks Investment Research | Jul 25, 2017 10:41PM ET
Aerospace giant, The Boeing Company (NYSE:BA) , reported adjusted earnings of $2.55 per share for second-quarter 2017, beating the Zacks Consensus Estimate of $2.32 by 9.9%. In the year-ago quarter, the company had incurred a loss of 44 cents.
On a GAAP basis, Boeing reported earnings of $2.89 per share against loss of 37 cents per share in the year-ago quarter.
Revenues
The company's revenues amounted to $22.74 billion in the reported quarter, missing the Zacks Consensus Estimate of $23.01 billion by 1.2%. The reported figure also declined 8.1% year over year.
Total Backlog
Backlog at the end of the second quarter was up to $482.2 billion from $479.5 billion at the end of first quarter. Reported backlog included $27 billion of net orders during the quarter.
Quarterly Segment Results
Commercial Airplane Segment: The segment saw a 10% decline in revenues to $15.71 billion. Operating margin for the quarter expanded 1560 basis points (bps) year over year to 10%.
Boeing reported commercial deliveries of 183 planes during the reported quarter, which was down due to lower 737, 777, 787 and 767 jet deliveries. Sequentially, the numbers reflected an 8.3% growth.
Delivery of the single-aisle 737 jet declined to 123 from 127 a year ago. This reduction was due to Boeing’s greater involvement in the production of a newer version of its most popular plane, the 737 MAX.
Shipments of the 777 and 787 Dreamliners were 21 and 33 compared with 28 and 38 in the year-ago period, respectively. The company delivered three 767 jets compared with four in the year-ago quarter. However, shipments of 747 were three compared with two in the year-ago period.
A look at Boeing’s second-quarter order details reveals that the company booked 183 net commercial orders (accounting for cancellations). This reflects an increase from the year-ago figure of 171. The figure included 95 orders for the 737, 64 for the 787, and 24 for the 777 jets.
Boeing Defense, Space & Security (BDS): The segment witnessed an approximate 4% year-over-year decrease in second-quarter revenues to $6.89 billion. Revenues at all of the three sub-segments – Boeing Military Aircraft (BMA) and Network & Space Systems (N&SS) and Global Services & Support (GS&S) – recorded year-over-year deterioration of 2.5%, 7.5% and 3.2%, respectively.
Operating margin for the quarter expanded 460 bps to 12.9%.
Backlog at BDS was $58 billion, 37% of which comprised orders from international clients.
In the defense and space business, Boeing’s deliveries totaled to 45 in the second quarter, in line with the year-ago figure. However, the reported figure was up from 42 in the preceding quarter. Total deliveries consisted of 17 AH-64 Apache (NYSE:APA) helicopters (both new and remanufactured) and 11 Chinook helicopters (new and renewed). In addition, the company delivered six F/A-18s, five P-8 models, four F-15s, and two Commercial and Civil Satellites.
Get The News You Want
Boeing Capital Corporation (BCC): Boeing Capital reported quarterly revenues of $72 million, compared with $84 million in the year-ago quarter. The segment’s earnings were $25 million compared with $18 million a year ago.
At the end of the second quarter, BCC's portfolio balance was $3.9 billion.
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