Boeing Co BA reported Wednesday morning its first quarter results, which crushed Wall Street's estimates and sent shares higher by more than 3 percent.
What Happened
Boeing said it earned $3.64 per share in the first quarter on revenue of $23.4 billion. Wall Street analysts were expecting the airplane maker to earn $2.58 per share on revenue of $22.24 billion.
Operating cash flow improved in the quarter from $2.098 billion a year ago to $3.136 billion and reflects higher commercial production rates, improved performance, and favorable timing of receipts and expenditures, the company said. Free cash flow improved from $1.632 billion to $2.742 billion over the same time period.
Why It's Important
Net income rose from $1.58 billion a year ago to $2.48 billion as the company is delivering airplanes at a record pace. The strong performance in the quarter contributed to the $1 billion in dividends paid to investors in the quarter, which represents a 20 percent increase from a year ago.
"Customers continue to recognize the value of our products and services, with strong orders booked in the quarter for defense, services and commercial offerings, including 221 net commercial aircraft orders," Boeing CEO Dennis Muilenburg said in a press release.
What's Next
Boeing offered the following outlook and guidance metrics:
- 2018 revenue guidance maintained at $96 to $98 billion.
- 2018 EPS guidance lifted from $13.80-$14.00 to new range of $14.30-$14.50.
- 2018 operating cash flow guidance lifted from around $15 billion to $15-$15.5 billion.
- On pace to build more than 900 airplanes per year by 2020.
The stock traded up about 2.5 percent to $337.40 at time of publication.
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