=Boeing (BA) reported earnings on Wed 30 Jan 2019 (b/o)

Boeing beats by $0.93, beats on revs; guides FY19 EPS above consensus, revs above consensus; guides to 2019 commercial airplane deliveries of 895-905

• Reports Q4 (Dec) core earnings of $5.48 per share, excluding non-recurring items, $0.93 better than the S&P Capital IQ Consensus of $4.55; revenues rose 14.4% year/year to $28.34 bln vs the $26.76 bln S&P Capital IQ Consensus.
  • Commercial Airplanes: Revenue in Q4 ter revenue increased 12% YoY to $17.3 bln, reflecting higher deliveries and favorable mix. Operating margin increased to 15.6% from 11.6% last year, driven by higher 737 volume and strong operating performance on production programs, including higher 787 margins. During the quarter, Commercial Airplanes delivered 238 airplanes. The 737 program delivered 111 MAX airplanes in Q4, including the first MAX delivery from the China Completion Center, and delivered 256 MAX airplanes in 2018. Backlog remains robust with nearly 5,900 airplanes valued at $412 bln.
  • Defense, Space & Security: Revenue increased 16% YoY to $6.1 bln, driven by increased volume across F/A-18, satellites, and weapons. Backlog at $57 bln, of which 30% represents orders from customers outside the US.
  • Global Services: Revenue increased 29% YoY to $4.9 bln, primarily driven by higher parts volume including the acquisition of KLX. 
• Co issues upside guidance for FY19, sees EPS of $19.90-20.10, excluding non-recurring items, vs. $18.41 S&P Capital IQ Consensus; sees FY19 revs of $109.5-111.5 bln vs. $106.72 bln S&P Capital IQ Consensus.
  • Co guides to 2019 commercial airplane deliveries of 895-905, up from 806 in 2018 and 763 in 2017.