Boeing's Q2 Beat Blemished By $450 Million Tanker Charge

Boeing BA shares trended down Wednesday as investors looked beyond its second-quarter earnings beat to a $450 million charge for developing a military refueling aircraft.

“It's worrying that Boeing took a charge of this magnitude this early in a long-term project," RBC's Robert Stallard said in a research note.

The first 18 combat-ready KC-46 Pegasus aircraft are to be delivered to the U.S. Air Force by August 2017 under the terms of the 2011 development contract.

A $1.1 billion overrun to be covered by Boeing was reported by Reuters in March. The contract for the first four development aircraft is capped by the Air Force at $4.9 billion, while the total contract calls for 179 aircraft for $52 billion through 2027.

“The company seems to be spending to keep the program on schedule as opposed to making excuses for why it's going to slide," Jefferies' Howard Rubel told Bloomberg.

Sterne Agee's Peter Arment said the recent second quarter beat earnings expectations and had solid profit margins.

"Simple takeaway is stay long Boeing," Arment said in a research note.

Boeing closed Wednesday at $126.71, down 2.34 percent.