Boeing’s Financial Report Confirms the Company’s Good Health and Delights Investors


Aircraft manufacturer Boeing delighted Wall Street on Wednesday with an optimistic outlook for 2018, including a planned delivery of record-breaking number of civilian aircraft, after significantly exceeding expectations for the past year.
The aircraft manufacturer intends to deliver between 810 and 815 aircraft to airline customers, at least 47 more aircraft compared to 2017 (763 aircraft), which was a record year.

Deliveries are the barometer of the financial health of an aviation group because an airline traditionally pays when it takes possession of the aircraft, which has an impact on the manufacturer’s turnover.

Boeing expects 2018 revenue between $ 96 and $ 98 billion, up 3 percent from 2017, and well above the $ 93.45 billion currently anticipated by the financial markets.

The aircraft manufacturer, which has a backlog filled – 5,864 devices to manufacture valued at 488 billion dollars – has recently increased its production rates: it will manufacture 52 aircraft of the 737 family per month as of this year, against 47 last year. The pace will be 57 in 2019.

The production of the 787 will increase from 12 to 14 devices per month.

In terms of profitability, adjusted earnings per share is expected to be in the range of $ 13.80 to $ 14 compared to $ 11.96 expected. Available cash will also improve significantly, from $ 13.34 billion to $ 15 billion, says Boeing, whose projections include benefits from the Trump administration’s recent tax reform. The latter will lower its tax rate to 16%.

On Wall Street, Boeing’s stock jumped 5.06% to 356 dollars in electronic exchanges before the opening bell on Wall Street. It has gained more than 109% in the last twelve months. 

Over the past year, Boeing posted a net profit of $ 8.2 billion, a strong increase of 67.5%, of which $ 3.1 billion in the fourth quarter (+ 92%), thanks to a tax credit of more than one billion as a result of a change in its accounting.

Adjusted earnings per share amounted to $ 4.80 in the last three months versus $ 2.89 expected by financial analysts.

The company’s annual turnover has fallen by 1.2% to 93.4 billion but is greater than the 92.55 billion expected. In the fourth quarter, it jumped 8.9% to 25.368 dollars, against 24.69 billion expected.

Editor-in-Chief of The Talking Democrat, Shakes enjoys bike riding, kayaking and playing soccer. On a slow weekend, you'll find him with a book by the lake.