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Boeing Exceeds Analysts’ Q2 2018 Earnings Estimates, Stock Soars

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Boeing’s second-quarter earnings

Boeing (BA), the world’s largest aerospace company, announced its second-quarter earnings results before the market opened on July 25. The US industrial (IYJ) giant delivered mixed results in the quarter.

Boeing beat Reuters-surveyed analysts’ adjusted EPS estimate of $3.26 by a narrow margin of 2.1%. Its adjusted EPS of $3.33 in the quarter were up 30.5% compared to $2.55 in the second quarter of 2017.

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Stock price movement

Boeing stock opened at $351.52 on July 25, a fall of 1.8% from its previous day’s close of $358.09. After falling to $345.5 during the trading session, its shares recovered before closing at $355.92, down 0.70%. On July 26, the stock regained its lost ground and closed at $359.32, up ~1%.

The markets were concerned due to lower-than-expected revenue in Boeing’s Commercial Airplanes segment and the company’s lowering its Defense segment’s 2018 operating margin forecast. This concern resulted in a zigzag movement in the jet manufacturer’s stock price.

Peers’ second-quarter earnings

Boeing’s competitor Lockheed Martin (LMT) surpassed analysts’ adjusted EPS estimate of $3.92 by ~10% in the second quarter. It reported adjusted EPS of $4.31 in the quarter, up 33.4% year-over-year. Northrop Grumman (NOC) reported adjusted EPS of $3.93 in the quarter, beating analysts’ estimate of $3.83 by 2.5%. General Dynamics’ (GD) adjusted EPS came in at $2.62, surpassing analysts’ estimate of $2.48 by 5.6%.

Raytheon Company (RTN) exceeded analysts’ adjusted EPS estimate of $2.35 by a wide margin of 18.5%. The company’s adjusted EPS were $2.78 in the second quarter.

In this post-earnings series, we’ll take a closer look at Boeing’s segment-wise revenue and margins.

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