Boeing reports third-quarter results and raises full year guidance

Boeing reported third-quarter GAAP earnings per share of US$3.60 and core earnings per share (non-GAAP) of US$3.51 reflecting overall solid execution on production programs and services, favorable tax items (US$0.98 per share), and timing of aircraft deliveries. Rvenue guidance has been increased US$500m to between US$93.5 and US$95.5bn on higher commercial deliveries. GAAP earnings per share guidance for 2016 has been increased to between US$7.10 and US$7.30 from US$6.40 and US$6.60 and core earnings per share (non-GAAP) guidance has been increased to between US$6.80 and US$7.00 from US$6.10 and US$6.30 to reflect a favorable US$0.70 per share tax basis adjustment.
Boeing Commercial Airplanes third-quarter revenue decreased to US$17.0bn on lower planned delivery volume. Third-quarter operating margin was 9.4%, reflecting delivery volume and mix, partially offset by lower period costs. During the quarter, Boeing began production of the 500th 787 Dreamliner, completed service ready validation of the 737 MAX 8, and began production of the 737 MAX 9. The 737 program has captured more than 3,300 orders for the 737 MAX since launch and the company remains on track to raise the production rate to 47 per month in the third quarter of 2017. During the quarter, Boeing continued to grow its services business through an agreement with Japan Airlines to provide spare parts solutions. Commercial Airplanes booked 107 net orders during the quarter. Backlog remains strong with more than 5,600 airplanes valued at US$409bn.