Boeing Raises Guidance on Tax Benefit -- Update
October 26 2016 - 10:49AM
Dow Jones News
By Anne Steele
Boeing Co. on Wednesday reported forecast-beating third quarter
profit and boosted its full-year guidance after a tax gain, but
said commercial jet order activity was moderating.
The company aircraft maker also raised the top end of its jet
delivery forecast by five planes to 750 and reported higher profits
on its 787 Dreamliner.
However, the company left its cash flow guidance for the year
unchanged and slowed stock buyback activity, and an advance in the
shares before the open reversed to leave them recently down 0.7% at
$138.04.
Boeing's accounting profit on the 787 has swung about $20
million over the past year, giving it a $4.2 million surplus on
each jet delivered in the latest quarter, estimates Jefferies. The
deferred production balance on the 787 fell $150 million to $27.52
billion over the latest quarter.
Group 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.
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 contract. In
presentation slides he forecast modest growth in U.S. military
spending and healthy overseas demand.
Boeing reported a third-quarter 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 10:34 ET (14:34 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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