Summary
Boeing's Q3 2016 filing shows a notable decrease in revenue and earnings from operations compared to the prior year, primarily driven by challenges within the Commercial Airplanes segment. Significant factors contributing to this decline include substantial "reach-forward" losses on the 747 program and the reclassification of costs related to 787 flight test aircraft to research and development expenses. While the Defense, Space & Security segment showed relative stability, overall profitability was significantly impacted by the issues in commercial aviation. Despite the top-line and bottom-line contraction, Boeing's financial position remains solid, supported by a robust backlog of orders. The company continues its share repurchase program and dividend payments, demonstrating a commitment to shareholder returns. Investors should closely monitor the ongoing recovery of the Commercial Airplanes segment and the execution of new defense contracts, as these will be critical drivers of future financial performance.
Financial Highlights
52 data points| Revenue | $23.90B |
| Cost of Revenue | $19.90B |
| Gross Profit | $3.99B |
| R&D Expenses | $857.00M |
| Operating Income | $2.28B |
| Net Income | $2.28B |
| EPS (Basic) | $3.64 |
| EPS (Diluted) | $3.60 |
| Shares Outstanding (Basic) | 625.50M |
| Shares Outstanding (Diluted) | 631.80M |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2016, decreased to $71.3 billion from $72.5 billion in the prior year, primarily due to lower airplane volume in Commercial Airplanes.
- 2Earnings from operations for the nine months ended September 30, 2016, significantly decreased to $3.7 billion from $6.3 billion in the prior year, largely impacted by $1.26 billion in reach-forward losses on the 747 program and a $1.24 billion reclassification of 787 flight test aircraft costs.
- 3Commercial Airplanes segment's earnings from operations dropped sharply to $1.7 billion for the nine months ended September 30, 2016, from $4.6 billion in the prior year, heavily influenced by the aforementioned 747 and 787 program impacts.
- 4Defense, Space & Security segment revenues remained relatively stable at $22.6 billion for the nine months ended September 30, 2016, with earnings from operations at $2.2 billion, showing resilience compared to the commercial segment.
- 5Net cash provided by operating activities increased to $7.7 billion for the nine months ended September 30, 2016, from $6.2 billion in the prior year, indicating strong cash generation despite lower earnings.
- 6The company repurchased $6.5 billion of its common stock during the nine months ended September 30, 2016, and paid $2.1 billion in dividends, signaling a continued focus on capital return to shareholders.
- 7Total contractual backlog stood at $448.9 billion as of September 30, 2016, a decrease from $476.6 billion at the end of 2015, reflecting deliveries outpacing new orders during the period.