Shares of Boeing declined Wednesday after the company reported revenue in its commercial airline division that fell short of estimates. Its earnings per share forecast for 2018 also disappointed.
The aerospace giant's second-quarter earnings beat Wall Street's expected results for the top and bottom lines. But Boeing stuck to its full year 2018 earnings per share guidance of $14.30 to $14.50, below the $14.56 consensus analyst estimate in a Thomson Reuters survey.
The commercial airplane division reported revenue of $14.48 billion, coming in about $350 million lower than estimates by FactSet. Boeing's core business also took a $307 million hit to its second-quarter operating margin, as the company said it recorded a charge "related to cost growth on the KC-46 Tanker" as Boeing pushes to certify the aircraft for the Air Force by October.
"Tanker was especially complex because of the multiple certifications required," Boeing CEO Dennis Muilenburg said on a conference call with investors after the earnings report. He noted that the KC-46 tanker requires both commercial and military certifications, unlike Boeing's other large airplanes like the 777 model.
"We've completed all of the flight testing for tanker associated with first delivery," Muilenburg said.
Shares of Boeing slipped more than 2 percent in afternoon trading.
The U.S. aviation company added even more planes to its already immense backlog of orders, with the company reporting it now has orders for nearly 5,900 airplanes, worth nearly half a trillion dollars.