Summary
Boeing Company (BA) reported a significant increase in earnings from operations for the nine months ended September 30, 2017, reaching $7.25 billion compared to $3.65 billion in the prior year period. This improvement was largely driven by a substantial recovery in the Commercial Airplanes segment, which saw earnings rise from $804 million to $3.65 billion, benefiting from reduced reach-forward losses and favorable accounting adjustments related to the 787 program. Total revenues for the nine months decreased slightly to $68.02 billion from $71.29 billion, primarily due to lower deliveries in the Defense, Space & Security (BDS) segment. However, the company's liquidity remains robust, with net cash provided by operating activities increasing to $10.44 billion. Boeing also continued its commitment to shareholder returns through share repurchases and dividends, underscoring a strong financial position despite a minor dip in overall revenue.
Financial Highlights
52 data points| Revenue | $24.22B |
| Cost of Revenue | $19.96B |
| Gross Profit | $4.27B |
| R&D Expenses | $768.00M |
| Operating Income | $2.63B |
| Net Income | $1.81B |
| EPS (Basic) | $3.03 |
| EPS (Diluted) | $2.99 |
| Shares Outstanding (Basic) | 598.30M |
| Shares Outstanding (Diluted) | 605.60M |
Key Highlights
- 1Earnings from operations surged by 98.5% to $7.25 billion for the nine months ended September 30, 2017, compared to $3.65 billion in the prior year, driven by a strong recovery in the Commercial Airplanes segment.
- 2Commercial Airplanes segment earnings significantly improved, reaching $3.65 billion, a substantial increase from $804 million in the prior year, largely due to reduced reach-forward losses and favorable accounting treatments.
- 3Total revenues for the nine months ended September 30, 2017, saw a slight decrease of 4.5% to $68.02 billion, primarily due to lower revenue in the Defense, Space & Security segment.
- 4The company generated strong operating cash flow, with net cash provided by operating activities increasing by 36.2% to $10.44 billion for the nine months ended September 30, 2017.
- 5Boeing continued its robust capital return program, repurchasing $7.5 billion of common stock and paying $2.58 billion in dividends during the nine months ended September 30, 2017.
- 6Inventories remained largely stable, at $43.03 billion as of September 30, 2017, indicating effective inventory management amidst production levels.
- 7The company's backlog remained substantial, totaling $474.29 billion as of September 30, 2017, providing a strong foundation for future revenues.