Post Earnings Coverage as Boeing Earnings Jump on Tax Settlements

Upcoming AWS Coverage on United Technologies Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 4, 2016 / Active Wall St. announces its post-earnings coverage on The Boeing Co. (NYSE: BA). The company released its financial results for the third quarter fiscal 2016 on October 26, 2016. The aerospace and defense contractor topped earnings and sales expectations, and edged up its forecast for revenue this year as deliveries rose in the latest quarter. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Boeing’s competitors within the Aerospace/Defense Products & Services industry, United Technologies Corp. (NYSE: UTX), reported third quarter 2016 results on October 25th, 2016. AWS will be initiating a research report on United Technologies in the coming days.

Today, AWS is promoting its earnings coverage on BA; touching on stock like UTX. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=BA

http://www.activewallst.com/registration-3/?symbol=UTX

Earnings Reviewed

For the three months ended on September 30th, 2016, Boeing reported earnings of $2.28 billion, or $3.60 per share, up from earnings of $1.7 billion, or $2.47 per share in the year ago period, boosted by a $0.70 tax benefit. Excluding items, the company reported adjusted earnings of $3.51 per share, outperforming analysts’ estimates of $2.62 per share. Revenue slipped 7.5% to $23.9 billion from $25.8 billion in Q3 2015, edging above the $23.64 billion in revenue analysts were expecting.

Segment Results

During Q3 2016, Boeing’s Commercial Airplanes segment revenue decreased 4% y-o-y to $17.0 billion on lower planned delivery volume. Operating margin in the reported quarter was 9.4%, down 0.6% from Q3 2015, reflecting delivery volume and mix, partially offset by lower period costs. During Q3 2016, Boeing began production of the 500th 787 Dreamliner, completed service ready validation of the 737 MAX 8, and began production of the 737 MAX 9. The 737 program has captured more than 3,300 orders for the 737 MAX since launch, and the company remains on track to raise the production rate to 47 per month in Q3 2017. Commercial Airplanes booked 107 net orders during the quarter, with the division having backlog of more than 5,600 airplanes valued at $409 billion.

For Boeing’s Defense, Space & Security division, Q3 2016 revenue was $7.5 billion, down 10% on a y-o-y basis. Operating margin in the reported quarter was 10.4%, down 1.8%, reflecting solid execution and the impact of the Commercial Crew program. Backlog at Defense, Space & Security was $53 billion, of which 38% represents orders from international customers.

The Boeing Military Aircraft (BMA) unit within the Defense, Space & Security division reported Q3 2016 revenue of $3.3 billion, down 19% from Q3 2015,reflecting fewer C-17 deliveries and volume on F-15. Operating margin increased to 13.3%, reflecting program mix. During the reported quarter, BMA was awarded a contract from the U.S. Air Force for low-rate initial production of 19 KC-46 Tanker aircraft and received an agreement from the U.K. Ministry of Defense to purchase 50 Apache attack helicopters and nine P-8 Poseidon aircraft.

During Q3 2016, Boeing’s Network & Space Systems (N&SS) in the Defense, Space & Security division, reported that revenue fell 20% on a y-o-y basis to $1.7 billion with an operating margin of 2.1%, primarily reflecting the charge on the Commercial Crew development program. During the reported quarter, N&SS announced an award for a 702MP satellite with a new digital payload offering twice the capacity of previous designs. The Global Services & Support (GS&S) unit’s revenue surged 17% to $2.5 billion in Q3 2016, reflecting higher volume in Aircraft Modernization & Sustainment and Training Systems & Government Services. Operating margin was 12.4% largely reflecting contract mix. During the quarter, GS&S was awarded contracts from the Defense Logistics Agency for F/A-18 spare parts.

At quarter-end, Boeing Capital’s net portfolio balance was $3.7 billion, up from the beginning of the quarter. Total pension expense for Q3 2016 was $453 million, down from $529 million in the same period of the prior year.

Financial Position

Boeing’s operating cash flow in Q3 2016 was $3.2 billion, reflecting solid operating performance. During the reported quarter, the company repurchased 7.6 million shares for $1.0 billion, leaving $7.5 billion remaining under the current repurchase authorization.

The company also paid $0.7 billion in dividends in Q3 2016, reflecting an approximately 20% increase in dividends per share compared to Q3 2015.

Cash and investments in marketable securities totaled $9.7 billion at the end of Q3 2016, up from $9.3 billion at the beginning of the quarter.

Debt was $10.5 billion, down $11.0 billion from the beginning of the quarter, due to repayment of debt.

Total company backlog at quarter-end was $462 billion, down from $472 billion at the beginning of the quarter, and included net orders for Q3 2016 of $15 billion.

Guidance

For FY16, Boeing is expecting revenue in the range of $93.5 billion to $95.5 billion compared with previous guidance for $93 billion to $95 billion on the back of higher aircraft deliveries. The company also lifted its FY16 adjusted per-share earnings between $6.80 per share and $7.00 per share, up from its previous guidance for $6.10 per share and $6.30 per share.

Stock Performance

Boeing’s share price finished yesterday’s trading session at $140.02, slightly down 0.52%. A total volume of 2.28 million shares exchanged hands. The company’s stock price advanced 3.98% in the last month, 7.17% in the past three months, and 6.81% in the previous six months. The stock is trading at a PE ratio of 25.72 and has a dividend yield of 3.11%.

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