Boeing Posts Upbeat Q2 Results, Lowers Earnings Forecast

reported better-than-expected results for the second quarter on Wednesday. However, the company lowered its earnings outlook for the year. The Chicago, Illinois-based company posted quarterly net earnings of $1.11 billion, or $1.59 per share, compared to $1.65 billion, or $2.24 per share, in the year-ago period. Excluding non-recurring items, the company's core earnings came in at $1.62 per share. Its revenue climbed 11 percent to $24.54 billion. However, analysts were expecting earnings of $1.37 per share on revenue of $24.22 billion. The average estimate among 34 Estimize users was for earnings of $2.14 per share and revenue of $24.01 billion. Commercial airplane sales surged 18 percent to $16.88 billion, while commercial aircraft deliveries jumped 9 percent to 197. Defense, Space & Security's revenue slipped 3 percent to $7.54 billion for the quarter. During the quarter, Boeing repurchased 14 million shares for $2.0 billion. At the end of the second quarter, the company had $9.6 billion in cash and investments in marketable securities and $9.0 billion debt, both unchanged versus the beginning of the quarter. "Record commercial airplane deliveries to customers worldwide drove solid revenue growth, and the strength of our overall portfolio and diligent focus produced significant operating cash flow during the quarter," said Boeing President and Chief Executive Officer Dennis Muilenburg. "Strong operating performance across our commercial and defense production programs partially offset the tanker charge and enabled us to maintain our commitments to return cash to our shareholders and invest in innovation and our people." For 2015, Boeing now expects adjusted earnings of $7.70 to $7.90 per share, versus earlier forecast of $8.20 to $8.40 per share. The company affirmed its revenue forecast of $94.5 billion to $96.5 billion for the year. Boeing shares gained 1.23 percent to $146.79 in pre-market trading.