Boeing Co rises 5% on Q4 results release

Boeing Co (NYSE:BA) is one of today’s top stock price gainers


Investors appear to have reacted positively to Q4 results released today by Boeing Co (NYSE:BA). The company’s stock price is up 5% at the time of writing.

It was able to deliver record operating earnings of $3 billion, with operating cash flow of $2.9 billion in the final quarter of the year. Its GAAP EPS for Q4 was $5.18, with core EPS of $4.80 up on strong deliveries, performance and tax reform.

The figures include favorable tax reform of $1.74 per share. Excluding this, the company’s core EPS figure was $3.06, which is still ahead of investor expectations of $2.89.

In the 2017 financial year, Boeing’s operating cash flow of $13.3 billion was a record and it allowed the company to repurchase $9.2 billion of shares. Its revenue of $93.4 billion reflected an all-time high 763 commercial deliveries. Its backlog remains robust at $488 billion, which includes a record 5,864 commercial aircraft. Meanwhile, cash and marketable securities of $10 billion provides strong liquidity according to today’s investor update.

The company’s Q4 results also included guidance for 2018. The company is expected to increase operating cash flow to $15 billion. Its revenue guidance of between $96 billion and $98 billion reflects commercial deliveries of between 810 and 815. GAAP EPS for 2018 is expected to be between $15.90 and $16.10, with core EPS of between $13.80 and $14.00.

In my view, Boeing’s performance in Q4 and in 2017 was relatively impressive. The company seems to have a sound strategy that has been able to generate improved financial performance and is expected to lead to further growth in cash flow, revenue and profitability in 2018.

Therefore, I feel that today’s 5% stock price rise could continue in the medium term, with investor sentiment towards the aerospace and defense sector having the potential to improve over the coming months.

About Robert Stephens 90 Articles
Robert Stephens is a CFA Charterholder and works as an Equity Analyst. He is a keen private investor and has bought and sold stocks for 15 years, investing in a range of sectors and markets. He has previously written for Seeking Alpha and The Motley Fool, and now runs his own business. If you would like to contact Robert, please email or contact him via one of the other methods on the 'Contact Us' page