Boeing Shares Fall on Weak Sales, Tax-Boosted Earnings Beat

Shares of aerospace giant Boeing (NYSE: BA  ) fell as much as 2.8% in Wednesday's morning session, following the release of second-quarter results.

Boeing's sales increased 1% year over year to $22 billion. Adjusted earnings jumped 22% higher to $2.42 per share. Operating cash flows before pension contributions fell 48%, landing at $1.8 billion. Analysts were looking for earnings of $2.01 per share on $22.2 billion in sales. Boeing fell short of both of the consensus revenue target, but beat earnings expectations.

The company delivered 181 aircraft to commercial airlines in the quarter, a 7% increase from the year-ago period. Defense, space, and security sales fell by 5%, led by 8% lower services and support revenue.

Looking ahead, Boeing kept full-year revenue guidance steady at approximately $89 billion. Official 2014 adjusted earnings projections were boosted from $7.25 to $8.00 per share, a 10% increase. Boeing lowered its operating margin forecast slightly for military aircraft operations, but raised them in the services and support division.

Effective tax rates are now expected to stop at 23%, down from 29% in the previous-quarter guidance rundown. Boeing recorded $524 million in tax benefits during the second quarter as two tax audits resulted in net benefits.

"With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse," said Boeing CEO Jim McNerney in a prepared statement. "We delivered our first 787-9 and our 8,000th 737, successfully completed a key missile defense intercept test, and delivered our 100th EA-18G Growler to the U.S. Navy."

OPEC is absolutely terrified of this game-changer
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour. And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3040915, ~/Articles/ArticleHandler.aspx, 10/26/2014 12:47:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement