Dreamliner Troubles Begone! Boeing Profit Beats by a Mile
Lifted by broad strength across its business units, Boeing managed to slough off the effects of a controversy with one of its marquee planes, as first quarter profit far exceeded Wall Street's expectations.
Recently, Boeing's 787 Dreamliner has been beset by battery problems that caused regulators in the U.S. and Japan to temporarily ground the plane. Analysts were concerned that the problems could erode Boeing's earnings.
Still, the aerospace giant managed to defy market's pessimism. Boeing posted quarterly earnings excluding items of $1.73 per share, a 24 percent jump from the $1.40 per share it saw in the comparable year-ago period. Revenue, however, decreased to $18.89 billion, from $19.38 billion a year ago, reflecting fewer deliveries of its troubled 787 Dreamliner.
"Our first priority in the days ahead is to fully restore our customers' 787 fleets to service and resume production deliveries," said Boeing's Chairman and CEO Jim McNerney in a statement. McNerney said that the company "worked around the clock to resolve the 787 battery issue," while ramping up deliveries of both the 737 and 777 planes.
"Our outlook for the year is positive, and our financial and delivery guidance is reaffirmed as we remain focused on the profitable ramp up in commercial airplane production rates, disciplined execution of our development programs, and continued growth in core, adjacent and international defense and space markets," the CEO added.
After the earnings announcement, Boeing saw its shares jump by more than three percent in extended-hours trading. (Click here for the market's reaction to Boeing's earnings report.)
Analysts had expected Boeing to report earnings per share of $1.49 per share on $18.80 billion in revenue, according to a consensus estimate from Thomson Reuters.
CORRECTION: An earlier version of this story incorrectly stated that Boeing's year-ago earnings number was $1.22. The company's actual year-ago diluted earnings per share was $1.22: the non-GAAP figure was $1.40.