Boeing misses 2Q profit forecasts

Boeing zoomed past estimates for second-quarter earnings and revenues and lowered its guidance for the rest of the year.

Taking a look at the long term growth prospects of the company, sell-side analysts have a consensus mean earnings per share estimate for the current year of $8.82.

Muilenburg said Boeing will fly the first fully outfitted tanker later this summer. The actual sales price, though, are significantly lower, sometimes by as much as 50 percent.

Boeing, which has nearly 5,700 airliners on order and a backlog worth $489bn, is looking at how to reduce the cost of producing its 787 Dreamliner jet, which uses advanced materials and systems to make it more efficient – features that are set to make it one of the company’s biggest selling aircraft.

Boeing bought back 14 million shares in the quarter for $US2 billion.

In addition to this, Boeing announced that the backlog for its Defense Space & Security segment stood at $58 billion, with 39% coming from worldwide orders.

Boeing is noted to have reported earnings per share (EPS) as $1.62 on quarterly revenues as $24.54 billion; beating The Street on both instances. Results at Boeing have been helped by strong demand in the commercial jet segment the past few quarters, some developments geopolitically that slowed growth in air traffic in certain regions of the world.

Commercial aircraft deliveries rose 9 percent to 197. The company delivered 197 commercial jets during the quarter, up from 181 during the same period past year. Analysts expect earnings of $7.88 per share for 2015, according to Thomson Reuters I/B/E/S. “The latest KC-46 charge should again remind investors that Boeing is more complex than a simple 787 cash story”, RBC Capital Markets analyst Robert Stallard wrote in a note to clients.

Revenue grew 11 per cent to $US24.54 billion from $US22.05 billion the year before.

Net income for Boeing’s 2QFY15 came in at $1.11 billion, compared to estimates of $944.29 million. But it guided full-year earnings below views. Given the large market capitalization of the company; standing at more than $100 billion today. GAAP earnings are now expected in the range of $7.60-$7.80 per share ($8.10-$8.30 expected earlier). Up to Tuesday’s close, Boeing’s shares had risen almost 12 percent this year, compared with a 1.5 percent fall in the Dow Jones U.S. Aerospace Index.

There are 14 covering research analysts that have issued an anticipated price level where they predict the stock will reach within the next year.

The Chicago-based company announced a charge of 77 cents per share related to the tanker program last week.