Boeing Raises Guidance on Tax Benefit
October 26 2016 - 8:55AM
Dow Jones News
By Anne Steele
Boeing Co. on Wednesday said its profit climbed, boosted by a
tax benefit, and the aircraft maker edged up its forecast for
revenue this year as deliveries rose in the latest quarter.
Shares, up 5.5% this month, rose another 1.6% premarket to
$141.25.
Revenue is now expected to come at $93.5 billion to $95.5
billion, compared with previous guidance for $93 billion to $95
billion, on higher aircraft deliveries. The company also sees
full-year adjusted per-share earnings between $6.80 and $7 a share,
up from its previous guidance for $6.10 and $6.30, due to a 70-cent
per-share tax adjustment. Still, the new outlook is still down from
an earlier range of $8.15 to $8.35.
Production stumbles have sliced into profitability lately.
Delays related to developing Boeing's new Air Force refueling
tanker, demand concerns about its biggest jetliner, the 747-8
jumbo, and the original high costs of its 787 Dreamliner -- its
most advanced jetliner -- are part of a yearslong hangover of high
initial development costs on crucial new programs.
On Wednesday, Chief Executive Dennis Muilenburg said the company
hit key milestones on the 737 MAX, 787-10 and other development
programs, including the first KC-46 production contracts.
In all for the September quarter, Boeing reported a profit of
$2.28 billion, or $3.60 a share, up from a year-earlier's $1.7
billion, or $2.47 a share. Excluding items, the company earned an
adjusted profit of $3.51 a share when factoring in the 70-cent tax
benefit. Factoring out the benefit, profit still topped analysts'
estimates for $2.62 a share, according to Thomson Reuters.
Revenue slipped 7.5% to $23.9 billion, edging in above the
$23.64 billion in sales analysts were looking for.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
October 26, 2016 08:40 ET (12:40 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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