Boeing profits beat expectations

Boeing profits beat expectations

Boeing’s fourth-quarter performance beat analysts’ estimates, but the company’s 2016 outlook came in well below Wall Street’s expectations.

Shares fell more than 6 per cent in Wednesday premarket trading.

For the period ended December 31, Boeing earned $US1.03 billion ($A1.47 billion), or $US1.51 per share. A year earlier the Chicago company earned $US1.47 billion, or $US2.02 per share.

Last week Boeing said that its fourth-quarter would include a $US569 million charge related to cutting production of its 747-8 cargo plane due to a slowdown in its air-freight business.

Its adjusted profit was $US1.60 per share.

The results surpassed Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $US1.37 per share.

Revenue declined to $US23.57 billion from $US24.47 billion. This managed to top the expectations of five analysts surveyed by Zacks, who were looking for $US23.4 billion in revenue.

Looking ahead, Boeing Co. anticipates its 2016 adjusted profit in a range of $US8.15 to $US8.35 per share on revenue between $US93 billion and $US95 billion. Analysts surveyed by FactSet are calling for a profit of $US9.41 per share on revenue of $US97.26 billion.

Its shares dropped $US8.40, or 6.6 per cent, to $US119.61 in premarket trading about an hour ahead of the market opening.

 

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