adminNEW YORK. – Boeing yesterday reported a smaller-than-expected loss, sending its shares up 3 percent in early trading. The loss of 44 cents a share in so-called core results, which excludes some pension and other expenses, was about half the 93-cent loss that analysts expected, on average, according to Thomson Reuters I/B/E/S.The world’s largest plane maker also reported $3,2 billion in cash flow in the quarter, down 2 percent from a year ago, but better than some analysts had expected.
“The Street’s looking positively on the results because the loss was less than anticipated,” said Jeff Windau, an analyst at Edward Jones in St Louis.
Shares rose as high as $139,39 before easing to $137,53, up 2 percent on the New York Stock Exchange. The loss reflects $3,23 per share in charges announced last week stemming from reclassification of 787 plane costs and unexpected expenses for the 747 jetliner and the KC-46 refueling tanker programs.
Revenue rose 1 percent to $24,8 billion, compared with estimates of $24,5 billion. Boeing’s underlying performance came from increased deliveries of twin-aisle commercial aircraft, and better profitability in its defence, space and security business.
While revenue in the unit fell 5 percent, profit rose 9 percent.
Boeing adjusted its full-year forecast to account for the one-time charges. It is now targeting earnings of $6,40 to $6,60 a share in 2016, down from $8,45 to $8,65. Adjusted earnings are expected to be $6,10 to $6,30, down from $8,15 to $8,35. – Reuters.
Online Reporter